Australian Dollar Falls On Weak Asian Shares
13 May 2021 - 1:22PM
RTTF2
The Australian dollar slipped against its major counterparts in
the Asian session on Thursday, as Asian markets followed Wall
Street lower after a jump in U.S. consumer prices triggered
concerns over whether the Federal Reserve would move to a tighter
monetary policy sooner than expected.
Expectations for a Fed rate hike has been pushed forward, with
investors pricing in an 80 percent chance of an increase as early
as December next year.
Yields on 10-year Treasuries steadied at 1.68 percent, after
having climbed 7 basis points overnight in the biggest daily rise
in two months.
But Fed officials played down risk of inflation, with vice chair
Richard Clarida saying the spike was largely driven by transitory
forces.
Oil prices retreated as Colonial Pipeline has restarted its
operations, after a cyberattack that forced it to shut down last
Friday.
The aussie dropped to 0.7706 against the greenback, setting a
1-week low. If the aussie falls further, it is likely to test
support around the 0.75 region.
The aussie declined to a 1-week low of 84.56 against the yen
from Wednesday's close of 84.65. The aussie is seen facing support
around the 81.5 mark.
The aussie weakened to more than a 6-month low of 0.9351 against
the loonie, while touching 1.5666 against the euro, its lowest
level in a month. The next possible support for the aussie is seen
around 0.92 against the loonie and 1.61 against the euro.
The aussie hit a session's low of 1.0770 against the kiwi, down
from Wednesday's close of 1.0785. The aussie may locate support
around the 1.06 level.
Data from Statistics New Zealand showed that New Zealand food
prices climbed an unadjusted 1.1 percent on month in April;
seasonally adjusted, food prices rose 0.7 percent.
On a yearly basis, food prices gained 0.7 percent.
Looking ahead, the U.S. weekly jobless claims for the week ended
May 8 and PPI for April will be featured in the New York
session.
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