Aussie Falls On Downbeat China Industrial Profit Figures
March 27 2015 - 1:54AM
RTTF2
The Australian dollar continued to be weaker against the other
major currencies in the Asian session on Friday, after data showed
that Chinese industrial company profits dropped in the first two
months of 2015.
Data from the National Bureau of Statistics showed that profits
of Chinese industrial firms fell by 4.2 percent year-over-year to
745.2 billion yuan in the January-February period, after the 8.0
percent drop in December.
Meanwhile, the decline in the commodity prices also weighed on
the currency.
The ongoing geopolitical concerns amid news that Saudi Arabia
and its allies have launched air strikes against the Houthi rebels
in Yemen had led to worries about a broader sectarian conflict in
the Middle East, as the Saudis consider the Houthi rebels as
proxies for Iran.
Amid uncertainties concerning the U.S. monetary policy and
economic outlook, the AUD has been trading lower in recent
sessions. Since March 24th, the Australian dollar has lost 1.73
percent against the U.S. dollar and 1.47 percent against the yen.
The aussie also lost 1.28 percent against the euro from March
23rd.
Thursday, the Australian dollar fell 0.16 percent against the
U.S. dollar, 0.43 percent against the yen, 0.50 percent against the
euro and 0.49 percent against the Canadian dollar.
In the Asian trading today, the Australian dollar fell to a
1-week low of 0.9727 against the Canadian dollar and a 4-day low of
0.7791 against the U.S. dollar, from yesterday's closing quotes of
0.9766 and 0.7827, respectively. If the aussie extends its
downtrend, it is likely to find support around 0.95 against the
loonie and 0.74 against the greenback.
Pulling away from an early 2-day high of 1.3875 against the
euro, the aussie slipped to 1.3957. At yesterday's close, the
aussie was trading at 1.3902 against the euro. On the downside,
1.43 is seen as the next support level for the euro.
The aussie depreciated to 1.0288 against the NZ dollar, from an
early high of 1.0323. The aussie may test support near the 1.01
area.
Against the yen, the aussie edged down to 92.96 from yesterday's
closing value of 93.28. The aussie is likely to find support around
the 90.54 area.
Data from the Ministry of Communications and Internal Affairs
showed that overall consumer prices in Japan gained 2.2 percent on
year in February, smaller than the 2.3 percent drop expected by
economists and down from 2.4 percent in January.
Looking ahead, German import price index and U.K. nationwide
house price index - both for February, are due to be released in
the European session.
At 4:00 am ET, Bank of England Chief Economist Andy Haldane will
deliver a speech about socio-economic complexity at the Lorentz
Center, in Amsterdam. Subsequently, after 45 minutes, Bank of
England Governor Mark Carney is expected to participate in a panel
discussion titled "Debt and Financial Stability - Regulatory
Challenges" at the Bundesbank conference in Frankfurt.
Bank of England Deputy Governor Ben Broadbent will deliver a
speech at the Imperial Business School in London at 5:15 am ET.
At 6:30 am ET, U.S. Federal Reserve Governor Stanley Fischer
will deliver a speech titled "The Nonbank Financial Sector: Issues
and Regulation" at the Deutsche Bundesbank Conference titled "Debt
and Financial Stability - Regulatory Challenges" in Frankfurt.
In the New York session, preliminary third quarter GDP data and
U.S. University of Michigan's final consumer sentiment index for
March are due.
At 3:35 pm ET, U.S. Federal Reserve Chair Janet Yellen is
expected to speak about monetary policy at the Federal Reserve Bank
Conference titled "The New Normal for Monetary Policy" at San
Fransisco.
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