Australian Dollar Extends Slide
April 02 2015 - 12:14AM
RTTF2
The Australian dollar continued to be weaker against the other
major currencies in the Asian session on Thursday, with the latest
negative trigger being the weak trade balance data, which added on
to the worries triggered by slumping iron ore prices and growing
expectation of an interest rate cut by the Reserve Bank of
Australia next week.
Data from the Australian Bureau of Statistics showed that
Australia had a seasonally adjusted merchandise trade deficit of
A$1.256 billion in February. This was smaller than the shortfall of
A$1.30 billion expected by economists, but was wider than the A$980
million deficit in January.
Exports were up 1.0 percent on month to A$27.874 billion, while
imports added 2.0 percent to A$29.129 billion.
Iron ore prices fell below the US$50 a ton mark for the first
time in a decade.
Additionally, economists expect another interest rate cut again
to a new record low of 2 percent at the nation's central bank's
upcoming meeting. In February, it cut the cash rate to a record low
of 2.25 percent, while also indicating that further easing may be
needed at its March meeting. Further, uncertainty concerning the
U.S. Federal Reserve's monetary policy normalization schedule has
also been weighing down on the aussie in recent sessions.
Wednesday, the Australian dollar fell 0.09 percent against the
U.S. dollar, 0.40 percent against the yen, 2.09 percent against the
euro and 0.59 percent against the Canadian dollar.
In the Asian session today, the Australian dollar fell to nearly
a 3-month low of 0.9546 against the Canadian dollar and a 2-month
low of 90.52 against the yen, from yesterday's closing quotes of
0.9588 and 90.98, respectively. If the aussie extends its
downtrend, it is likely to find support around 0.94 against the
loonie and 89.00 against the yen.
Against the euro and the U.S. dollar, the aussie dropped to a
4-week low of 1.4220 against the euro and more than a 3-week low of
0.7567 against the U.S. dollar from yesterday's closing quotes of
1.4161 and 0.7598, respectively. The aussie may test support near
1.43 against the euro and 0.74 against the greenback.
The aussie slipped to a 2-day low of 1.1016 against the NZ
dollar, from yesterday's closing value of 1.0193. On the downside,
1.00 is seen as the next support level for the aussie.
Looking ahead, U.K. Markit/CIPS construction PMI for March is
due to be released in the European session.
In the New York session, Canada merchandise trade data for
February, U.S. weekly jobless claims for the week ended March 28
and U.S. trade balance and factory orders - both for February are
slated for release.
At 3:45 pm ET, U.S. Federal Reserve Governor Lael Brainard is
expected to speak at the Ninth Biennial Federal Reserve System
Community Development Research Conference in Washington DC.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Mar 2024 to Apr 2024
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Apr 2023 to Apr 2024