Australian Dollar Falls On Oil Price Slide
29 November 2016 - 12:15PM
RTTF2
The Australian dollar weakened against other major currencies in
the Asian session on Tuesday amid oil prices slide, as investors
turned cautious ahead of an OPEC meeting on production cuts, due on
Wednesday.
Crude oil prices for January delivery is currently down 0.29
percent or $46.79 per barrel.
The oil extended Friday's losses after Saudi Arabia backed out
of the non-OPEC meeting slated for Monday.
Meanwhile, Iraq and Iran also raised objections with OPEC
officials over curbing output, referring the issue to ministers for
further consideration.
However, it is still possible for the cartel to clinch a final
agreement about how to share the burden of supply cuts implied by
the preliminary output accord agreed by ministers in September.
Monday, the Australian dollar showed mixed trading against its
major rivals. While the aussie rose against the U.S. dollar, the
euro, and the Canadian dollar, it fell against the yen and the NZ
dollar.
In the Asian trading, the Australian dollar fell to 0.7458
against the U.S. dollar, from an early near 2-week high of 0.7497.
The aussie may test support around the 0.73 area.
Against the euro and the yen, the aussie dropped to 1.4202 and
83.61 from yesterday's closing quotes of 1.4181 and 83.73,
respectively. If the aussie extends its downtrend, it is likely to
find support around 1.45 against the euro and 81.00 against the
yen.
Against the Canadian and New Zealand dollars, the aussie edged
down to 1.0017 and 1.0547 from yesterday's closing quotes of 1.0007
and 1.0575, respectively. On the downside, 0.98 against the loonie
and 1.04 against the kiwi are seen as the next support level for
the aussie.
Looking ahead, the German import price index for October is due
to be released in the pre-European session at 2:00 am ET.
At 4:30 am ET, U.K. mortgage approvals for October and M4 money
supply data for September and Eurozone business climate index for
November are slated for release.
In the New York session, preliminary German CPI data for
November, Canada current account data for the third quarter, U.S.
second estimate GDP data for the third quarter, U.S. S&P
Case-Shiller home price index for September, and U.S. consumer
confidence index for November are set to be published.
At 9:15 am ET, Federal Reserve Bank of New York President
William Dudley is expected to speak about the opportunities for
economic growth, in Puerto Rico.
At 12:40 pm ET, Federal Reserve Governor Jerome Powell is
expected to speak about the economic outlook at the Economic Club
of Indiana Luncheon, in Indianapolis.
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