Commodity Currencies Slide As Asian Markets Traded In Negative Territory
28 July 2017 - 1:53PM
RTTF2
Commodity currencies such as the Australian, the New Zealand and
the Canadian dollars weakened against their major counterparts in
the Asian session on Friday. Asian stock markets are in negative
territory on Friday following the mixed cues overnight from Wall
Street and as investors focused on regional corporate earnings
results.
In other economic news, data from the Australian Bureau of
Statistics showed that the final demand producer prices in
Australia climbed 0.5 percent on quarter in the second quarter of
2017, unchanged from the previous three months. On a yearly basis,
producer prices jumped 1.7 percent, accelerating from 1.3 percent
in the three months prior.
Domestic prices were up 0.6 percent on quarter and 2.2 percent
on year, while import prices added 0.2 percent on quarter but fell
1.7 percent on year.
Thursday, the Australian and the New Zealand dollars had risen
against their major counterparts. The Australian dollar rose 0.64
percent against the the U.S.dollar, 0.39 percent against the yen
and 0.02 percent against the euro. The NZ dollar rose 0.38 percent
against the the U.S.dollar, 0.32 percent against the yen, and 0.07
percent against the euro.
Meanwhile, the Canadian dollar had fallen 0.25 percent against
the the U.S.dollar, 0.75 percent against the yen, and 0.32 percent
against the euro.
In the Asian trading, the Australian dollar fell to 2-day lows
of 0.7953 against the U.S. dollar and 1.4685 against the euro, from
yesterday's closing quotes of 0.7967 and 1.4652, respectively. If
the aussie extends its downtrend, it is likely to find support
around 0.77 against the greenback and 1.48 against the euro.
Against the yen, the aussie edged down to 88.37 from yesterday's
closing value of 88.64. The aussie may test support near the 87.00
region.
The NZ dollar fell to 2-day lows of 0.7470 against the U.S.
dollar, 82.97 against the yen and 1.5642 against the euro, from
yesterday's closing quotes of 0.7486, 83.29 and 1.5593,
respectively. If the kiwi extends its downtrend, it is likely to
find support around 0.72 against the greenback, 82.00 against the
yen, and 1.58 against the euro.
Against the Australian dollar, the kiwi dropped to 1.0661 from
an early 4-day high of 1.0618. The kiwi is likely to find support
around the 1.07 region.
The Canadian dollar fell to more than a 2-week low of 1.4691
against the euro and a 4-day low of 88.33 against the yen, from
yesterday's closing quotes of 1.4652 and 88.64, respectively. If
the loonie extends its downtrend, it is likely to find support
around 1.48 against the euro and 87.00 against the yen.
Against the U.S. and the Australian dollars, the loonie dropped
to 1.2567 and 1.0014 from yesterday's closing quotes of 1.2551 and
0.9998, respectively. On the downside, 1.27 against the greenback
and 1.01 against the aussie are seen as the next support levels for
the loonie.
Meanwhile, the safe-haven yen rose against its major rivals.
The yen rose to more than a 5-week high of 114.21 against the
Swiss franc and a 3-day high of 145.01 against the pound, from
yesterday's closing quotes of 115.29 and 145.35, respectively. If
the yen extends its uptrend, it is likely to find resistance around
112.00 against the franc and 141.00 against the pound.
Against the euro and the U.S. dollar, the yen advanced to 129.55
and 110.92 from yesterday's closing quotes of 129.91 and 111.27,
respectively. The yen may test resistance near 127.00 against the
euro and 108.00 against the greenback.
Looking ahead, Eurozone business climate index for July is due
to be released later in the day.
In the New York session, the German flash CPI data for July,
Canada GDP data for May, U.S. GDP data for the second quarter, U.S.
University of Michigan's final consumer sentiment index for July
and U.S. Baker Hughes rig count data are slated for release.
At 1:20 pm ET, Federal Reserve Bank of Minneapolis President
Neel Kashkari is expected to speak at a town hall event, in
Minnesota.
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