News Column

Australian Dollar Falls Against Majors

July 28, 2014

CANBERA (Alliance News) - The Australian dollar weakened against the other major currencies in the Asian session on Tuesday, as risk appetite remained muted, as traders looked ahead to some key economic events scheduled for the week.

Regional markets in Asia are trading on a lackluster note. Australia's S&P 200 index is currently down 2.90 points or 0.05% at 5,574 and the All Ordinaries index is also down 1.30 points or 0.02% at 5,568.

In the economic news, new home sales in Australia increased in June as sales of multi-units surged, data from the Housing Industry Association showed. Total home sales rose 1.2% month-on-month in June.

This was driven by a 15.9% surge in sales of multi-units. However, sales of detached houses fell 1% in June.

Against the US and NZ dollars, the Australian dollar fell to 0.9391 and 1.0984 from early 4-day highs of 0.9415 and 1.1011, respectively. At yesterday's close, the aussie was trading at 0.9404 against the greenback and 1.1001 against the kiwi. If the aussie extends its downtrend, it is likely to find support around 0.935 against the greenback and 1.08 against the kiwi.

Pulling away from an early 4-day high of 95.89 against the yen, the aussie retreated to 95.69. The pair was quoted at 95.79 at yesterday's close. Continuation of the bearish trend may lead the aussie to a support around the 94.98 mark.

Data from the Ministry of Economy, Trade and Industry showed that retail sales in Japan fell 0.6% on year in June. That missed forecasts for a decline of 0.5% following the 0.4% drop in May.

The Australian dollar retreated to 1.0145 against the Canadian dollar and 1.4304 against the euro, from early highs of 1.0168 and 1.4270, respectively. The aussie closed yesterday's deals at 1.0153 against the loonie and 1.4286 against the euro. The aussie may test support near 1.00 against the loonie and 1.43 against the euro.

Looking ahead, US S&P/Case-Shiller home price index for May and consumer confidence index for July are due to be released in the New Yok session.

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Source: Alliance News

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