Australian Dollar Drops Amid Rising Risk Aversion
11 November 2019 - 1:30PM
RTTF2
The Australian dollar declined against its major counterparts in
the Asian session on Monday, as uncertainty about a U.S.-China
trade deal and rising political turmoil in Hong Kong dampened
investor sentiment.
According to reports, at least two protesters were injured in
Hong Kong after police opened fire at mass demonstrations in the
city.
Weak China producer price index fanned concerns over global
growth.
Although China's consumer price index grew at its fastest pace
in about eight years, a measure of producer prices fell the most in
more than three years in October, underscoring the problem of
moderating demand.
The aussie dropped to a session's low of 0.6848 against the
greenback and held steady thereafter. The aussie is seen finding
support around the 0.67 region.
The aussie fell to a 4-day low of 74.61 against the yen from
Friday's closing value of 74.90. The next likely support for the
aussie is seen around the 72.5 region.
Data from the Cabinet Office showed that Japan core machinery
orders declined unexpectedly in September.
Core machinery orders, a leading indicator of private capital
investment, declined 2.9 percent month-on-month, following a 2.4
percent drop in August.
The aussie edged lower to 1.6094 against the euro from last
week's closing value of 1.6057. If the aussie falls further, it may
find support around the 1.63 level.
The aussie slipped to 0.9061 against the loonie and held steady
thereafter. On the downside, 0.89 is possibly seen as the next
support level for the aussie.
The aussie weakened to a 6-day low of 1.0794 against the kiwi
from Friday's closing value of 1.0834. The aussie may challenge
support around the 1.05 level.
Figures from Statistics New Zealand showed that New Zealand
retail card spending declined for the first time in five months,
driven by hardware and appliances sales.
Retail card spending fell 0.6 percent on month in the October,
after a 0.2 percent rise in September.
Looking ahead, U.K. GDP data for the third quarter, industrial
production, trade data and construction output for September are
due in the European session.
Euro vs AUD (FX:EURAUD)
Forex Chart
From Apr 2024 to May 2024
Euro vs AUD (FX:EURAUD)
Forex Chart
From May 2023 to May 2024