Australian Dollar Weakens On Virus Concerns
June 30 2021 - 11:31PM
RTTF2
The Australian dollar fell against its major opponents in the
Asian session on Thursday, as investors continue to worry about the
fallout from the Delta variant of Covid-19 in economic
activity.
Soft manufacturing PMI readings from Japan and China signaled
that curbs imposed to fight the virus are hurting growth
momentum.
Data from IHS Markit showed that China's manufacturing sector
growth softened in June as output and new orders growth slowed due
to an uptick in COVID-19 cases and supply chain difficulties.
The Caixin manufacturing Purchasing Managers' Index fell to a
3-month low of 51.3 in June from 52.0 in May. The reading was below
economists' forecast of 51.8. However, a score above 50.0 indicates
expansion in the sector.
Traders are looking to Friday's U.S. nonfarm payrolls report for
more clarity on the Federal Reserve's policy outlook.
U.S. private payrolls increased more than expected in June,
signaling a strengthening of the labor market.
The aussie weakened to more than a 6-month low of 0.7476 against
the greenback, after rising to 0.7501 at 6:30 pm ET. On the
downside, 0.72 is possibly found as its next support level.
The aussie edged down to 83.11 against the yen, 1.5837 against
the euro and 0.9277 against the loonie, pulling away from its early
highs of 83.35, 1.5803 and 0.9299, respectively. If the aussie
slides further, it may find support around 80.00 against the yen,
1.60 against the euro and 0.90 against the loonie. The aussie was
steady against the kiwi, following a drop to 1.0712 earlier in the
session, which was its lowest level since June 4. The pair had
ended yesterday's trading at 1.0723.
Looking ahead, PMI reports from major European economies and
Eurozone jobless rate for May are due in the European session.
U.S. weekly jobless claims for the week ended June 26, ISM
manufacturing PMI for June and construction spending for May are
set for release in the New York session.
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