News Column

Australian Dollar Weakens Against Majors

July 27, 2014

CANBERA (Alliance News) - The Australian dollar fell against the other major currencies in the Asian session on Monday, as regional stocks traded on a lackluster note, with a weak lead from Wall Street last week and a dearth of economic data leaving investors uninspired.

Australia's S&P/ASX 200 Index and the All Ordinaries indexes are currently flat after being notably down in the morning session.

Amid the ongoing worries over the unrest in Ukraine and the Middle East, the US State Department has released satellite images backing up its claims that Russia had fired rockets across the border and into Ukraine. Dutch Prime Minister Mark Rutte said on Sunday that an international military mission to secure the crash site of Malaysia Airlines flight 17 is currently "unrealistic."

The conflict in Gaza continues even as both Israel and Hamas agreed to a 24-hour humanitarian truce and US President Obama demanded an "immediate, unconditional humanitarian ceasefire," to end hostilities.

The Australian dollar fell to 5-day lows of 0.9385 against the US dollar and 95.52 against the yen, from early highs of 0.9400 and 95.68, respectively. If the aussie extends its downtrend, it is likely to find support around 0.932 against the greenback and 94.89 against the yen.

Pulling away from early highs of 1.4282 against the euro and 1.0164 against the Canadian dollar, the aussie slipped to 1.4306 and 1.0150, respectively. The aussie may test support near 1.43 against the euro and 1.00 against the loonie.

Looking ahead, US Markit's purchasing manager's index for July and pending home sales for June are due in the New York session.

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Source: Alliance News

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