News Column

Australian Dollar Declines On Wider-than-expected Trade Deficit

July 1, 2014

CANBERA (Alliance News) - The Australian dollar fell against the other major currencies in early Asian deals on Wednesday, as nation's trade deficit widened more-than-forecast in May.

The data from the Australian Bureau of Statistics Australia said that Australia's merchandise trade deficit came in at AUD1.911 billion in May.

That was well shy of forecasts for a deficit of AUD200 million following the downwardly revised AUD780 million deficit in April.

Exports were down 5.0% on month to AUD26.681 billion, while imports eased 1.0% to AUD28.592 billion.

The aussie which ended yesterday's deals at 0.9495 against the greenback and 1.0092 against the loonie slipped to 0.9458 and 1.0063, respectively. If the aussie slides further, it is likely to face support around 0.94 against the greenback and 1.00 against the loonie.

The aussie ticked down to 96.12 against the yen from yesterday's closing quote of 96.39. On the downside, 95.5 is seen as next support level for the aussie.

The aussie slipped to 1.4456 against the euro, compared to 1.4400 hit late New York Tuesday. The next possible downside target for the aussie lies around the 1.455 zone.

The aussie reversed from an early multi-week high of 1.0837 against the NZ dollar and eased to 1.0799. The aussie is likely to find support around the 1.07 mark.

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Source: Alliance News

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