Antipodean Currencies Slide
05 February 2016 - 10:42AM
RTTF2
The Australian and the New Zealand dollars weakened against
their major counterparts in the Asian session on Friday, as
regional shares fell reflecting weakness in the financial and oil
sectors. Investors are treading cautiously ahead of the release of
key U.S. jobs data later in the day.
The Australian dollar fell earlier after the release of nation's
retail sales data.
Data from the Australian Bureau of Statistics showed that the
total value of retail sales in Australia was unchanged in December
on a seasonally adjusted basis. That missed forecasts for an
increase of 0.4 percent, which would have been unchanged from the
November reading. Sales were up 0.6 percent in October.
In other economic news, the Australian Industry Group reported
that the construction sector in Australia remained in contraction
in January with a PMI score of 46.3. That's down from 46.8 in
December, and it moves further beneath the boom-or-bust line of 50
that separates expansion from contraction.
Thursday, the Australian dollar rose against its major rivals
due to rising risk appetite, as gains in crude oil prices as well
as other commodity prices on the back of a weaker dollar lifted
resource stocks. The Australian dollar rose 0.75 percent against
the U.S. dollar, 0.34 percent against the yen and 0.47 percent
against the euro.
Meanwhile, the NZ dollar showed mixed trading against its major
rivals. While the NZ dollar rose against the U.S. dollar, it held
steady against the yen and the euro.
In the Asian trading, the Australian dollar fell to 2-day lows
of 1.5604 against the euro and 83.89 against the yen, from
yesterday's closing quotes of 1.5560 and 84.03, respectively. If
the aussie extends its downtrend, it is likely to find support
around 1.60 against the euro and 81.00 against the yen.
Against the U.S. and the Canadian dollars, the aussie dropped to
0.7176 and 0.9873 from yesterday's closing quotes of 0.7198 and
0.9902, respectively. The aussie may test support near 0.70 against
the greenback and 0.97 against the loonie.
The NZ dollar fell to 2-day lows of 1.6729 against the euro and
78.24 against the yen, from yesterday's closing quotes of 1.6663
and 78.46, respectively. If the kiwi extends its downtrend, it is
likely to find support around 1.71 against the euro and 76.00
against the yen.
Against the U.S. dollar, the kiwi dropped to 0.6691 from
yesterday's closing value of 0.6720. The kiwi may test support near
the 0.64 region.
The kiwi edged down to 1.0741 against the Australian dollar,
from an early 2-day high of 1.0671. On the downside, 1.09 is seen
as the next support level for the kiwi.
Looking ahead, preliminary Japan leading index for December is
due to be released at 12:00 am ET. Subsequently, German factory
orders for December is slated for release in the pre-European
session at 2:00 am ET.
At 7:00 am ET, European Central Bank Vice President Vitor
Constancio is expected to speak on the occasion of the awarding of
the German Bernacer Prize organized by the Bank of Spain in
Madrid.
In the New York session, U.S. trade balance for December, U.S.
non-farm payrolls report for January, Canadian trade balance data
for December, Canada Ivey purchasing managers index for January,
U.S. Baker Hughes reg count data and U.S. consumer credit for
December are set to be published.
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