Australian Dollar Falls Amid Risk Aversion
11 March 2024 - 1:56PM
RTTF2
The Australian dollar weakened against other major currencies in
the Asian session on Monday, as Asian stock markets traded lower,
following the broadly negative cues from Wall Street on Friday, as
traders reacted to mixed U.S. monthly jobs data and are cautious
ahead of the release of key U.S. inflation data on Tuesday that
could have a more profound impact on the outlook for interest
rates.
Some traders also booked profits following the recent market
strength.
Weakness across most sectors led by mining, energy and financial
stocks, also weighed on the investor sentiment.
Crude oil prices fell amid uncertainty about the outlook for
demand, particularly from China after data showed a drop in the
country's oil imports in the first two months of the year. West
Texas Intermediate Crude oil futures for April shed $0.92 or 1.2
percent at $78.01 a barrel. WTI crude futures sank 2.5 percent in
the week.
In the Asian trading today, the Australian dollar fell to nearly
a 1-month low of 97.06 against the yen, from Friday's closing value
of 97.46. The aussie may test support near the 95.00 region.
Against the U.S. and the New Zealand dollars, the aussie dropped
to 4-day lows of 0.6606 and 1.0706 from last week's closing quotes
of 0.6627 and 1.0729, respectively. If the aussie extends its
downtrend, it is likely to find support around 0.64 against the
greenback and 1.05 against the kiwi.
Against the euro and the Canadian dollar, the aussie edged down
to 1.6554 and 0.8911 from last week's closing quotes of 1.6499 and
0.8932, respectively. The next possible downside target for the
aussie is found around 1.67 against the euro and 0.87 against the
loonie.
Looking ahead, U.S. CB employment trends index for February and
U.S. NY Fed 1-Year consumer inflation expectations results are
slated for release in the New York session.
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