Australian Dollar Falls As Economic Growth Slows Further
06 March 2019 - 01:13PM
RTTF2
The Australian dollar slipped against its major counterparts in
the Asian session on Wednesday, as a data showed that Australia's
economic growth continued to slow in the fourth quarter, supporting
hopes for a rate cut by the Reserve Bank of Australia this
year.
Data from the Australian Bureau of Statistics showed that
Australia's gross domestic product was up a seasonally adjusted 0.2
percent on quarter in the fourth quarter of 2018.
That was shy of expectations for an increase of 0.5 percent
following the 0.3 percent gain in the three months prior.
On an annualized basis, GDP was up 2.3 percent - again missing
forecasts for 2.6 percent and down from 2.8 percent in the previous
quarter.
Investors await details about progress in U.S.-China trade talks
and also focused on the Brexit negotiations.
While the U.S. and China may be nearing a trade deal, analysts
believe that tensions between the two countries could rapidly
rekindle over enforcement and implementation of structural
issues.
The aussie weakened to 0.7029 against the greenback, its lowest
since January 4. The aussie is poised to challenge support around
the 0.69 level.
The Australian currency that closed Tuesday's trading at 79.26
against the yen dropped to near a 2-week low of 78.55. The aussie
is seen finding support around the 77.5 level.
The aussie slipped to a 5-day low of 1.6070 against the euro,
from a 6-day high of 1.5941 hit at 7:00 pm ET. The aussie is likely
to challenge support around the 1.62 level.
Having advanced to a 1-week high of 0.9472 against the loonie at
7:00 pm ET, the aussie declined to a 5-day low of 0.9398. Next key
support for the aussie is seen around the 0.928 mark.
The aussie edged down to 1.0390 against the kiwi, pulling away
from a high of 1.0429 touched at 5:15 pm ET. If the aussie falls
further, 1.02 is likely seen as its next support level.
Looking ahead, German construction PMI for February is due in
the European session.
The Bank of Canada announces its interest rate decision at 10:00
am ET. Economists expect the central bank to retain benchmark rate
at 1.75 percent.
In the New York session, U.S. ADP private sector payrolls data
for February, Canada Ivey PMI for the same month, U.S. and Canadian
trade data for December and U.S. Federal Reserve's Beige book
report are scheduled for release.
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