Aussie Falls; Hits 5-day Low Against Loonie
During early Asian deals on Wednesday, the Australian dollar edged down against its major counterparts despite a gain in regional stocks. The aussie thus declined to a 5-day low against the Canadian dollar and it eased from a 2-day high against the euro.
The Australian stock market opened higher and is trading firm today with investors indulging in some brisk buying across the board despite a mixed close on Wall Street overnight. Higher crude oil and copper prices as well as positive comments about the economy by Westpac are aiding sentiment to a significant extent in morning trades.
The benchmark S&P/ASX 200 index, which advanced to 4,780.4 following a bright start, is currently trading at 4,762, up 32.5 points or 0.7% over its previous close. The broader All Ordinaries index, which has drifted down to 4,782 from a high of 4,798.4, is up 28.10 points or 0.6%.
In economic news, a barometer of economic activity in Australia increased in September. The Leading Economic Index published today by Westpac Bank and the Melbourne Institute rose to an annualized rate of 5.8 percent in September, compared to 3.8 percent in August.
Meanwhile, the Australian Bureau of Statistics said that hourly wages excluding bonuses in Australia were up 0.7 percent in the third quarter of 2009 compared to the previous three months. That was in line with analyst expectations following the 0.8 percent quarterly gain in the second quarter.
In addition, the Australian Bureau of Statistics said that merchandise imports value increased in original terms in October, rising A$329 million or 2% to A$17.96 billion compared to a revised A$17.63 billion in the previous month.
Against the US dollar, the Australian currency edged down during early Asian deals on Wednesday. At 8:55 pm ET, the aussie-dollar pair touched a low of 0.9271, compared to 0.9308 hit late New York Tuesday. The next downside target level for the pair is seen around 0.918.
The Australian dollar lost ground after hitting a 2-day high of 1.5975 against the European currency during today’s early Asian deals. At 8:55 pm ET, the aussie slipped to 1.6050 against the euro with 1.616 seen as the next target level. The euro-aussie pair closed Tuesday’s North American session at 1.5991.
Against the Japanese yen, the Aussie traded down during Wednesday’s early Asian deals. At 8:55 pm ET, the aussie-yen pair declined to 82.79, compared to Tuesday’s closing value of 83.09. If the pair falls further, 81.4 is seen as the next target level.
The Australian dollar that closed Tuesday’s New York deals at 0.9784 against its Canadian counterpart plunged to a 5-day low of 0.9761 at 8:55 pm ET. On the downside, 0.965 is seen as the next target level for the aussie-loonie pair.
Looking ahead, Japan’s October final machine tool orders report is due at 1:00 am ET. The preliminary reading showed a decline of 61.9 percent on year, and the final reading is not expected to stay too far from that figure.
In the European session, the Euro-zone current account and construction output reports for September are expected.
Across the Atlantic, the U.S. consumer price index for October is scheduled to be released at 8:30 am ET. The consensus estimates call for a 0.2% increase in the headline consumer price index, while the core consumer price index that excludes food and energy is expected to have remained unchanged.
At the same time, a report on housing starts, is also due out. Economists estimate housing starts of 585,000 for October.
The Energy Information Administration is scheduled to release its weekly petroleum inventory report for the week ended November 13th at 10:30 am ET.
