Commodity Currencies Drop Amid Falling Oil Prices Ahead Of Trump Iran Decision
08 May 2018 - 6:43PM
RTTF2
The commodity currencies such as the Australian, the New Zealand
and the Canadian dollars fell against their major counterparts in
the European session on Tuesday on falling oil prices, as investors
awaited U.S. President Donald Trump's decision over whether he
would stay in a landmark nuclear deal with Iran.
Crude for June delivery fell $0.87 to $69.86 per barrel.
The announcement will be made at 2 pm ET. The decision is being
made four days ahead of the May 12 deadline.
Investors worry that possibility of U.S. re-imposing sanction on
Iran will adversely impact crude supply to the international
markets.
In economic news, data from the Australian Bureau of Statistics
showed that Australia's retail sales remained flat in March,
defying economists' forecast for an increase.
The seasonally adjusted retail trade turnover showed no
variations in March, following a 0.6 percent rise in February.
Meanwhile, it was expected to increase by 0.2 percent.
The aussie and the loonie fell against their major opponents in
the Asian session. Meanwhile, the kiwi rose against the greenback
but held steady against the yen and the euro.
The aussie dropped to near a 1-year low of 0.7450 against the
greenback and a 5-day low of 1.5935 against the euro, from its
early highs of 0.7528 and 1.5854, respectively. The aussie is seen
finding support around 0.73 against the greenback and 1.61 against
the euro.
The aussie slipped to a 5-day low of 1.0678 against the kiwi and
a 5-week low of 81.18 against the yen, off its previous highs of
1.0719 and 81.99, respectively. The aussie is likely to find
support around 1.05 against the kiwi and 79.00 against the yen.
The Australian currency retreated to 0.9661 against the loonie,
after having advanced to a 4-day high of 0.9707 at 3:30 am ET. On
the downside, 0.95 is likely seen as the next support for the
aussie.
Pulling away from its early highs of 0.7031 against the
greenback and 76.61 against the yen, the kiwi dipped to a
4-1/2-month low of 0.6969 and more than a 6-week low of 75.93,
respectively. If the kiwi continues its fall, 0.68 and 74.00 are
possibly seen as its next support levels against the greenback and
the yen, respectively.
The kiwi reversed from an early high of 1.6970 against the euro,
edging down to 1.7034. Next key support for the kiwi is likely seen
around the 1.72 level.
The loonie slipped to more than a 4-week low of 83.89 against
the yen and a 1-1/2-month low of 1.2985 against the greenback, off
its early highs of 84.70 and 1.2876, respectively. The next
possible support for the loonie is seen around 82.5 against the yen
and 1.31 against the greenback.
The loonie reversed from an early high of 1.5354 against the
euro, falling to a weekly low of 1.5444. The loonie is poised to
challenge support around the 1.56 area.
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