Australian Dollar Tumbles On Inflation Report
Wednesday morning in Asia, the Australian dollar plummeted against other major currencies after a report showed that Australia’s consumer price index rose at a weaker than expected pace in the second quarter. The aussie slumped to a 2-day low against the Canadian dollar, 12-day low against the New Zealand dollar, 6-day low against the euro and a 5-day low against the greenback.
Australia’s consumer price index gained 3.1% year-on-year in the June quarter, the Australian Bureau of Statistics said. This was lower than analyst forecasts for a 3.4% rise and follows a 2.9% increase in prices in the March quarter.
On a quarter-over-quarter basis, consumer prices rose 0.6% between April and June, compared with a 0.9% rise in the March quarter. Economists had forecast a 1% increase.
Today’s inflation report may allow the central bank to keep interest rates unchanged next month.
The Australian dollar declined against the euro during early Asian deals on Wednesday and touched a 6-day low of 1.4543 at 10:00 pm ET. If the aussie weakens further, it may likely target the 1.498 level. As of now, the euro-aussie pair is worth 1.4530, compared to 1.4404 hit late New York Tuesday.
During early Asian session on Wednesday, the Australian dollar fell to a 5-day low of 0.8927 against the U.S. currency at 10:00 pm ET. The aussie-greenback pair that closed yesterday’s trading at 0.9028 is now worth 0.8940. The next downside target level for the Australian dollar is seen at 0.864.
The Australian dollar, which closed yesterday’s trading at 0.9348 against the Canadian dollar slipped to a 2-day low of 0.9268 in early Wednesday Asian deals at 9:55 pm ET. On the downside, 0.915 is seen as the next target level for the Australian currency. At present, the aussie-loonie pair is worth 0.9275.
In early Asian deals on Wednesday, the Australian dollar dropped against the Japanese yen. At 9:55 pm ET, the aussie-yen pair touched 78.29, down from yesterday’s close of 79.36. If the Australian dollar falls further, it may likely target the 75.6 level. The pair is presently worth 78.40.
The Australian dollar that climbed to a 2-day high of 1.2349 against the New Zealand dollar in early Asian deals on Wednesday at 9:10 pm ET fell sharply shortly thereafter. Currently, the aussie-kiwi pair is trading at a 12-day low of 1.2220 with 1.214 seen as the next downside target level. At yesterday’s close, the pair was quoted at 1.2323.
Looking ahead, New Zealand’s NBNZ business confidence report for July is due at 11:00 pm ET.
Japan’s small business confidence report for July has been slated for release at 1:00 am ET.
The European Central Bank will publish its bank lending survey report at 4:00 am ET.
At 8:30 am ET, the U.S. durable goods orders report for June is expected.
The Federal Reserve is due to release its Beige Book, a compilation of anecdotal evidence on economic conditions from each of the 12 Federal Reserve districts, at 2 pm ET.
