Australian Dollar Falls As U.S. Political Uncertainty Dampens Sentiment
25 September 2019 - 5:09PM
RTTF2
The Australian dollar declined against its major counterparts in
the European session on Wednesday, as European shares fell on U.S.
political uncertainty, after House democrats launched a formal
impeachment inquiry into President Donald Trump.
Trump criticism of China's trade practices at the United
National General Assembly on Tuesday also fueled pessimism about
the prospect of a trade truce between the world's two largest
economies.
Not only has China declined to adopt promised reforms, it has
embraced an economic model dependent on massive market barriers,
heavy state subsidies, currency manipulation, product dumping,
forced technology transfers and the theft of intellectual property
and also trade secrets on a grand scale," Trump said at the United
National Assembly.
"I will not accept a bad deal with the American people," he
added.
House Speaker Nancy Pelosi announced a formal impeachment
inquiry into President Donald Trump in the wake of allegations that
he had pressured Ukraine's government to investigate Democratic
rival Joe Biden.
The currency has been trading lower against its major
counterparts in the Asian session.
The aussie declined to 0.6773 against the greenback, from a high
of 0.6804 hit at 10:30 pm ET. The next possible support for the
aussie is seen around the 0.625 level.
The aussie fell to a 2-day low of 72.64 against the yen from
Tuesday's closing value of 72.81. Should the aussie drops further,
71.00 is likely seen as its next support level.
Data from the Bank of Japan showed that producer prices in Japan
were unchanged in August - in line with expectations following the
upwardly revised 0.2 percent increase in July.
On a yearly basis, producer prices were up 0.6 percent -
exceeding forecasts for 0.5 percent but unchanged from the July
reading following an upward revision from 0.5 percent.
The Australian currency that finished Tuesday's trading at
1.6202 against the euro weakened to 1.6239. The aussie is seen
finding support around the 1.65 region.
The aussie reached as low as 0.8981 against the loonie, compared
to 0.9005 hit late New York Tuesday. Next initial support for the
aussie is seen around the 0.87 region.
The aussie held steady against the kiwi, after having dropped to
1.0702 in the Asian session, which was its lowest level since
September 12. At Tuesday's close, the pair was worth 1.0753.
New Zealand's central bank left its key interest rate unchanged
after cutting the rate by 50 basis points in August.
The Monetary Policy Committee of Reserve Bank of New Zealand
headed by Adrian Orr decided to hold the Official Cash Rate at 1.0
percent.
Looking ahead, the U.S. new home sales for August will be
featured in the New York session.
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