Australian Dollar Falls After China's Suspension Of Economic Dialogue With Canberra
The announcement by China's top economic planner that it was
suspending activities under the China-Australia Strategic Economic
Dialogue triggered a sell-off in the Australian dollar in the Asian
session on Thursday.
In a statement, the National Development and Reform Commission
said that it had "indefinitely suspended" its high-level economic
dialogue with Australia.
Beijing said that the move was based "on the current attitude of
the Australian Commonwealth Government toward China-Australia
China is Australia's largest trading partner and disruptions
between the two nations could have economic impact on
Last month, Australia revoked Victoria state's participation in
China's Belt and Road Initiative amid escalating tensions between
Relations between China and Australia have deteriorated since
Canberra's push to seek a probe into the origins of the coronavirus
The aussie eased off to 84.24 against the yen, after rising to a
6-day high of 84.82 at 9:15 pm ET. The aussie is poised to find
support around the 80.00 mark.
Minutes from the Bank of Japan's meeting on March 18 and 19
showed that members of the monetary policy board said that the
country's economy is showing signs of inconsistent improvement but
continues to be threatened by COVID-19.
The pandemic and its different variants continue to shroud the
global economic recovery in uncertainty, the minutes said. The
members said they will monitor the situation and will take
additional easing measures if they're needed.
The aussie pulled back to 0.7701 against the greenback and
1.5576 against the euro, from its early 2-day high of 0.7758 and a
9-day high of 1.5479, respectively. The next possible support for
the aussie is seen around 0.75 against the greenback and 1.57
against the euro.
The aussie weakened to 1.0718 against the kiwi, setting a 6-day
low. On the downside, 1.06 is seen as its next likely support
Data from Statistics New Zealand showed that New Zealand
building permits spiked a seasonally adjusted 17.9 percent on month
in March - coming in at 4,218.
That follows the 19.3 percent monthly contraction in
The Australian currency reversed from an early 2-day high of
0.9512 against the loonie, falling to a 6-day low of 0.9462. The
aussie is seen finding support around the 0.93 mark.
Looking ahead, U.K. final services PMI for April and Eurozone
retail sales for March are due in the European session.
The Bank of England's monetary policy announcement will be out
at 7:00 am ET. The Monetary Policy Committee is widely expected to
hold the key rate at a record low of 0.10 percent and the
quantitative easing programme at GBP 875 billion.
The U.S. weekly jobless claims for the week ended May 1 are
scheduled for release in the New York session.