Australian Dollar Slides After Weak Trade Data
06 September 2018 - 01:17PM
RTTF2
The Australian dollar dropped against its major counterparts in
the Asian session on Wednesday, after a data showed that
Australia's trade surplus decreased in July.
Data from the Australian Bureau of Statistics showed that the
trade surplus fell to a seasonally adjusted A$1.55 billion in July
from A$1.94 billion in June. Nonetheless, this was above the
expected level of A$1.45 billion.
Data showed that exports dropped 1 percent from the previous
month, while imports remained broadly unchanged in July.
Asian stock markets were mixed amid continuing worries over
global trade tensions and emerging market woes.
News that U.S. President Donald Trump intends to impose tariffs
on another $200 billion worth of Chinese imports as soon as a
public comment period ends on Thursday also weighed on investor
sentiment.
Meanwhile, Canada's Foreign Minister Chrystia Freeland said that
the U.S. and Canada are making "good progress" on the revision of
the North American trade pact but talks will continue to resolve
remaining issues.
The aussie declined to 0.7166 against the greenback, from a high
of 0.7211 hit at 10:45 pm ET. The aussie is likely to challenge
support around the 0.70 level.
The aussie reversed from an early high of 80.28 against the yen,
edging down to 79.80. If the aussie falls further, it may find
support around the 78.00 level.
Having advanced to 0.9494 against the loonie at 10:45 pm ET, the
aussie reversed direction and weakened to 0.9450. On the downside,
0.93 is possibly seen as the next support level for the aussie.
The aussie fell to a 2-1/2-year low of 1.6221 against the euro
and held steady thereafter. The aussie is poised to find support
around the 1.65 level.
The aussie dropped to a 3-day low of 1.0883 against the kiwi
early in the session and held steady thereafter. At yesterday's
close, the pair was worth 1.0908.
Looking ahead, at 8:15 am ET, U.S. ADP private payrolls for
August are due.
In the New York session, Canada building permits for July, U.S.
weekly jobless claims for the week ended September 1, factory
orders for July and ISM non-manufacturing composite index for
August are set for release.
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