Australia, NZ Dollars Extend Slide
December 17 2014 - 12:48AM
RTTF2
The Australian and New Zealand dollars extended weakness against
the other major currencies in the Asian session, as disappointing
data on Chinese factory activity on Tuesday hit commodity
prices.
Data from Markit showed a contraction in Chinese manufacturing
activity. The HSBC/Markit manufacturing purchasing managers' index
fell to 49.5 in December from November's final reading of 50.
Subsequently, commodity prices fell, and crude oil for January
delivery is currently down $0.98 at $54.95 a barrel.
In the economic news, data from Westpac Bank and the Melbourne
Institute showed that the outlook for Australia's economy continued
to remain below trend in November. The leading index dropped to
-0.47 percent in November from -0.15 percent in October.
Data from Statistics New Zealand showed that New Zealand had a
seasonally adjusted current account deficit of NZ$2.5 billion in
the third quarter of 2014. That follows the NZ$1.01 billion
shortfall in the second quarter. Exports of goods fell NZ$380
million, while imports of goods added NZ$325 million.
On Tuesday, the Australian and New Zealand dollars were trading
lower against their major rivals. The Australian dollar fell 0.35
percent against the euro and 1.10 percent against the yen. The NZ
dollar fell 0.20 percent against the euro, 0.69 percent against the
U.S. dollar and 0.48 percent against the yen.
In Asian trading today, the Australian dollar fell to a
4-1/2-year low of 0.8150 against the U.S. dollar and a 9-month low
of 1.5322 against the euro, from yesterday's closing quotes of
0.8216 and 1.5216, respectively. If the aussie extends its
downtrend, it is likely to find support around 0.80 against the
greenback and 1.54 against the euro.
Against the Canadian dollar, the aussie slipped to a 6-day low
of 0.9485 from yesterday's closing quote of 0.9552. On the
downside, 0.93 is seen as the next support level for the
aussie.
The aussie, which closed yesterday's deals at 95.64 against the
yen, edged down to 95.31. It may test support near the 94.00
region.
The NZ dollar also fell to 0.7730 against the U.S. dollar and
90.33 against the yen from yesterday's closing quotes of 0.7795 and
90.74, respectively, in the Asian session. If the kiwi extends its
downtrend, it is likely to find support around 0.76 against the
greenback and 88.50 against the yen.
Against the euro, the kiwi fell to a 1-week low of 1.6154 from
yesterday's closing quotes of 1.6030 and 90.74, respectively.
Continuation of bearish trend may lead the greenback to a support
around the 1.62 mark.
Looking ahead, Japan final machine tool orders for November is
due to be released at 1:00 am ET.
In the European session, Eurozone final CPI data for November is
due to be released.
In the New York session, Canada wholesale sales data for October
and U.S. CPI for November and current account balance for the third
quarter are due to be released.
At 2:00 pm ET, the Federal Reserve will announce its decision on
monetary policy. The Fed is expected to hold rates at 0.25 percent.
Subsequently, Fed Chair Janet Yellen holds a press conference
following FOMC meeting on interest rate policy.
NZD vs US Dollar (FX:NZDUSD)
Forex Chart
From Aug 2024 to Sep 2024
NZD vs US Dollar (FX:NZDUSD)
Forex Chart
From Sep 2023 to Sep 2024