Australian Dollar Falls Amid Risk Aversion
28 October 2016 - 3:01PM
RTTF2
The Australian dollar weakened against the other major
currencies in the early European session on Friday amid risk
aversion, after a sell-off in government bonds hit rate-sensitive
stocks on Wall Street overnight and ECB policymaker Ewald Nowotny
said the central bank will decide in December on the mechanism for
prolonging the QE program. Investors also remain cautious ahead of
the U.S. GDP data due out later in the day.
The U.K.'s FTSE 100 index is currently down 0.47 percent or
32.59 points at 6,953, France's CAC 40 index is down 0.13 percent
or 5.68 points at 4,527 and Germany's DAX is down 0.70 percent or
75.38 points at 10,641.
The U.S. government will publish its first estimate of
third-quarter gross domestic product later today, and the numbers
can truly alter the course of a December rate hike.
In the Asian trading today, the aussie held steady against its
major rivals.
In the early European trading, the Australian dollar fell to an
8-day low of 1.4411 against the euro, from an early high of 1.4339.
The aussie may test support near the 1.47 euro.
Against the U.S., the New Zealand and the Canadian dollars, the
aussie dropped to a 2-week low of 0.7573, a 4-day low of 1.0622 and
a 3-day low of 1.0142 from early highs of 0.7608, 1.0664 and
1.0175, respectively. If the aussie extends its downtrend, it is
likely to find support around 0.74 against the greenback, 1.04
against the kiwi and 0.99 against the loonie.
The aussie slipped to 79.76 against the yen, from an early high
of 80.02. On the downside, 77.00 is seen as the next support level
for the aussie.
Looking ahead, at 5.00 am ET, European Commission is scheduled
to issue euro area economic and business sentiment survey results
for October.
In the New York session, Germany's flash consumer price data for
October, U.S. third-quarter GDP data, U.S. University of Michigan's
final consumer sentiment index for October and U.S. rig count data
are due to be released.
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