Australian Dollar Drops On Tariff Worries
10 December 2019 - 4:35PM
RTTF2
The Australian dollar declined against its major counterparts in
the European session on Tuesday amid risk aversion, as investors
awaited the Dec. 15 deadline for the next round of U.S. tariffs on
Chinese imports.
Washington is due to impose new tariff hikes on $160 billion of
Chinese goods if the two sides fail to reach an accord.
China's assistant minister of commerce Ren Hongbin said Beijing
is hoping negotiations can conclude on a trade deal before the new
tariffs kick in this weekend.
Markets also await meetings by the Federal Reserve and the
European Central Bank as well as the outcome of Britain's snap
election Thursday for directional cues.
A two-day meeting of the Federal Reserve ends on Wednesday, with
economists expecting no change in economic forecasts and the
interest rate outlook.
Data from the Australian Bureau of Statistics showed that
Australia house prices rose 2.4 percent on quarter in the third
quarter of 2019.
That beat expectations for an increase of 1.5 percent following
the 0.7 percent decline in the second quarter.
Survey data from National Australia Bank showed that Australia's
business confidence declined in November, unwinding the increase
seen in previous month, while business conditions remained
unchanged.
The business confidence index dropped two points to zero in
November suggesting that on average firms see no change in business
conditions going forward.
The currency traded mixed against its major counterparts in the
previous session. While it rose against the yen, it was steady
against the greenback and the euro. Against the kiwi, it
dropped.
The aussie declined to a 5-day low of 1.6259 against the euro,
from a high of 1.6192 seen at 9:15 pm ET. The next possible support
for the aussie is seen around the 1.65 level.
Having climbed to 0.6837 against the greenback at 9:15 pm ET,
the aussie reversed direction, touching an 8-day low of 0.6811. If
the aussie slides further, 0.67 is likely seen as its next support
level.
The aussie fell to a 6-day low of 73.94 against the yen, after
rising as high as 74.28 at 9:15 pm ET. The aussie is seen locating
support around the 72.5 region.
The aussie depreciated to a 4-day low of 0.9019 against the
loonie, from a high of 0.9046 it recorded at 9:15 pm ET. On the
downside, 0.89 is possibly seen as the next support level for the
aussie.
In contrast, the aussie held steady against the kiwi, following
more than a 4-month low of 1.0398 seen at 2:15 am ET. This may be
compared to a 4-day high of 1.0431 it logged in the Asian session.
At yesterday's close, the pair was worth 1.0419.
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