News Column

Australian Dollar Falls Against Majors

July 24, 2014

CANBERA (Alliance News) - The Australian dollar weakened against the other major currencies in the Asian session on Friday, as regional stocks declined following a drop in commodity prices and reports about a likely strike in iron ore terminals.

Australia's S&P 200 index is currently down 16.30 points or 0.29% at 5,571 and the All Ordinaries index is also down 15.90 points or 0.29% at 5,560.

Sentiment was also hurt by the ongoing tensions in Ukraine and the Middle East. More than 15 Palestinians were killed and 200 injured when a UN-run school used as a shelter came under fire in Northern Gaza on Thursday.

Meanwhile, the US accused Russia of firing artillery across its border with Ukraine targeting Ukrainian military positions.

The Australian dollar rallied on Thursday in reaction to the positive Chinese manufacturing data.The results of a preliminary survey by Markit Economics and the HSBC Bank showed that manufacturing activity in China increased more than expected in July.

The Australian dollar fell to 2-day lows of 0.9401 against the US dollar, 1.4321 against the euro and 1.0101 against the Canadian dollar, from early highs of 0.9423, 1.4284 and 1.0124, respectively. The aussie may test support near 0.93 against the greenback, 1.43 against the euro and 1.43 against the loonie.

Against the yen, the aussie fell to 95.68 from an early high of 95.91. If the aussie extends its downtrend, it is likely to find support around the 94.88 area.

Data from the Ministry of Internal Affairs and Communications showed that consumer prices in Japan climbed 3.6% on year in June. That was bigger than the 3.5% rate expected by economists, although it weakened from 3.7% in May.

Looking ahead, German GfK consumer sentiment for August is due at 2:00 am ET. The other notable economic data due in the European session are the German Ifo business climate for July and UK second quarter GDP report.

In the New York session, US durable goods orders for June is due to be released.

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Source: Alliance News

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