Australian Dollar Falls Amid Risk Aversion
July 25 2019 - 11:23PM
RTTF2
The Australian dollar drifted lower against its major
counterparts in the Asian session on Friday, as most Asian markets
declined following the weak cues overnight from Wall Street amid
renewed uncertainty about the near-term outlook for interest rates
in the U.S. and Europe.
The European Central Bank made no immediate changes to interest
rates on Thursday and noted that the risk of recession was
relatively low, disappointing investors who had hoped for a more
dovish stance.
U.S. weekly jobless claims fell to a three-month low last week
and durable goods orders rebounded notably, supporting the view the
Fed won't be aggressive in its easing measures.
The Federal Reserve meets next week, with investors expecting a
rate cut of 25 basis points.
Weak earnings reports and disappointing forecasts from U.S.
companies also dented sentiment.
Investors focus on upcoming U.S.-China trade talks amid
increasing anxiety about slower global economic growth.
The aussie declined to more than a 2-week low of 0.6939 against
the greenback, from a high of 0.6955 hit at 8:20 pm ET. If the
aussie slides further, it may find support around the 0.68
level.
The aussie fell to 75.38 against the yen, after rising to a
session's high of 75.59 at 8:20 pm ET. The next possible support
for the aussie is seen around the 73.5 level.
Reversing from its early highs of 0.9153 against the loonie and
1.6025 against the euro, the aussie pulled back to 0.9135 and
1.6061, respectively. The currency is likely to find support around
0.89 against the loonie and 1.63 against the euro.
The Australian currency depreciated to 1.0425 against the kiwi,
off its early 2-day high of 1.0440. The aussie is poised to find
support around the 1.025 level.
Looking ahead, U.S. GDP data for the second quarter is due in
the New York session.
AUD vs Yen (FX:AUDJPY)
Forex Chart
From Aug 2024 to Sep 2024
AUD vs Yen (FX:AUDJPY)
Forex Chart
From Sep 2023 to Sep 2024