Australian Dollar Falls Against Most Majors
During Asian deals on Wednesday, the Australian dollar edged down against its U.S., European and Japanese counterparts on the back of weak regional equities.
On the other hand, the Aussie rose to a new multi-day high against the Canadian dollar as the latter was weakened by lower oil price.
After an early move up north, the Australian stock market drifted down into negative territory as investors went in for some profit taking following recent sharp rallies.
The benchmark S&P/ASX 200 index, which rose to 4,867.8 in early trades, is currently down 9.1 points or 0.2% at 4,836. The broader All Ordinaries index is trading at 4,850, down 6.5 points or 0.2% from its previous close.
Against the US dollar, the Australian currency traded down during Asian deals on Wednesday. At 11:55 pm ET, the aussie-dollar pair touched a low of 0.8905, compared to 0.8951 hit late New York Tuesday. If the pair falls further, 0.881 is seen as the next target level. The pair is currently trading at 0.8909.
The Australian dollar that closed Tuesday’s North American session at 1.6045 against the European currency slipped to 1.6090 at 12:10 am ET Wednesday. The next downside target level for the aussie is seen around 1.621.
Against the Japanese yen, the Aussie edged down during today’s early deals. At 11:55 pm ET, the aussie-yen pair declined to 82.07, compared to Tuesday’s closing value of 82.33. The pair is presently trading at 82.12 with 80.6 seen as the next target level.
An index measuring manufacturing activity in Japan posted a seasonally adjusted score of 53.8 in December, the Nomura/JMMA Japan Manufacturing Purchasing Managers Index revealed today. New export orders rose from 52.2 to 54.7, marking the highest level since July 2004. Output jumped from 54.4 to 57.7, rising for the first time in three months.
The Australian dollar showed strength against its Canadian counterpart during early deals on Wednesday. At 12:15 am ET, the aussie-loonie pair reached a 9-day high of 0.9373. On the upside, 0.946 is seen as the next target level for the aussie. The pair closed yesterday’s New York deals at 0.9342.
Looking ahead, the eurozone’s seasonally adjusted money supply report and the Italian producer price index-both for the month of November are slated for release in the upcoming European session.
From the U.S., the Chicago Purchasing Manger Index for December and the weekly crude oil inventories for the week ended December 25 are expected in the North American session.
