Commodity Currencies Fall As Asian Stock Markets Traded In Negative Territory
August 10 2017 - 11:16PM
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, as tensions continued to escalate
between the U.S. and North Korea. President Trump further suggested
that his "fire and fury" comments may not have been tough enough.
Investors also digested local corporate earnings results.
Crude oil delivery for September is currently down 0.37 percent
or $48.21 per barrel. The crude oil prices fell after OPEC admitted
that its production rose in July despite a supply quota agreement
with Russia. The cartel pumped oil at a relatively robust pace even
as Saudi Arabia tried to get smaller members to comply.
In other economic news, data from Business NZ showed that the
manufacturing sector in July continued to expand in July, though at
a slower rate, with a Performance of Manufacturing Index score of
55.4. That's down from the downwardly revised 56.0 in June.
Data from Statistics New Zealand showed that the food prices in
New Zealand were down an unadjusted 0.2 percent on month in July,
following the 0.2 percent gain in June. On yearly basis, food
prices were up 3.0 percent for the second straight month.
Data from the Real Estate Institute of New Zealand showed that
New Zealand's house prices increased in July from a year ago, while
the volume of sales plunged. The national median house price index
rose 3.4 percent year-over-year to NZ$501,000 in July. However,
median prices dropped 2.3 percent, month-on-month.
On a seasonally adjusted basis, national median prices grew 3.3
percent in July from a year ago.
In the Asian trading, the Australian dollar fell to a 1-month
low of 1.5011 against the euro and a 1-1/2-month low of 85.45
against the yen, from yesterday's closing quotes of 1.4948 and
86.00, respectively. If the aussie extends its downtrend, it is
likely to find support around 1.51 against the euro and 84.00
against the yen.
Against the U.S. and the Canadian dollars, the aussie dropped to
nearly a 4-week low of 0.7839 and a 2-day low of 0.9993 from
yesterday's closing quotes of 0.7872 and 1.0035, respectively. The
aussie may test support near 0.76 against the greenback and 0.98
against the loonie.
The aussie edged down to 1.0786 against the NZ dollar, from
yesterday's closing value of 1.0819. On the downside, 1.05 is seen
as the next support level for the aussie.
The NZ dollar fell to nearly a 3-month low of 1.6228 against the
euro and nearly a 2-month low of 79.08 against the yen, from
yesterday's closing quotes of 1.6173 and 79.49, respectively. If
the downtrend continues, kiwi may find its support around 1.63
against the euro and 77.00 against the yen.
Against the U.S. dollar, the kiwi dropped to 0.7252 from
yesterday's closing value of 0.7277. The kiwi is likely to find
support near the 0.71 region.
The Canadian dollar fell to nearly a 1-month low of 1.2753
against the U.S. dollar and a 1-1/2-month low of 85.47 against the
yen, from yesterday's closing quotes of 1.2742 and 85.69,
respectively. If the loonie extends its downtrend, it is likely to
find support around 1.30 against the greenback and 84.00 against
the yen.
Against the euro, the loonie dropped to 1.5008 from yesterday's
closing value of 1.4999. The loonie is could find support near the
1.51 region.
Looking ahead, U.S. CPI for July and U.S. Baker Hughes rig count
data are due to be released in the New York session.
At 9:40 am ET, Federal Reserve Bank of Dallas President Robert
Kaplan is expected to speak about economic conditions and monetary
policy at an annual continuing education event for accounting
professionals, in Arlington.
At 11:30 am ET, Federal Reserve Bank of Minneapolis President
Neel Kashkari is expected to speak at the Independent Community
Bankers of Minnesota Annual Convention.
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