The Australian dollar weakened against the other major currencies in the Asian session on Monday, hurt by weakness in commodities, particularly gold.
Gold has collapsed to the lowest levels since March 2010, due to lack of global inflation, dropping 3.9 percent to $1,089.80 an ounce.
Meanwhile, crude oil prices also fell, weighing on the currency. Crude oil for August delivery are currently down $0.09 to $50.80 a barrel. The weakness was due to fears of a supply glut, with Iran set to flood global markets.
Greece revamped its government in an attempt to enforce conditions attached to third debt bailout.
German lawmakers on Friday voted in favor of starting negotiations on a new bailout deal for Greece, a crucial test of support for the deal after the ECB raised its emergency funding for Greek banks and Eurozone countries agreed to a crucial short-term funding.
The markets now await the release of the Reserve Bank of Australia’s July meeting minutes on Tuesday, to get more clues as to whether the central bank is likely to hold off its interest rates from further easing.
Last Friday, the Australian dollar held steady against its major rivals.
In the Asian trading now, the Australian dollar fell to a 6-year low of 0.7327 against the U.S. dollar, a 1-week low of 90.99 against the yen and a 4-day low of 0.9524 against the loonie, from Friday’s closing quotes of 0.7368, 91.40 and 0.9556, respectively. If the aussie extends its downtrend, it is likely to find support around 0.72 against the greenback, 89.00 against the yen and 0.93 against the loonie.
Against the euro and the NZ dollar, the aussie dropped to 4-day lows of 1.4723 and 1.1224 from last week’s closing values of 1.4676 and 1.1296, respectively. The aussie may test support near 1.51 against the euro and 1.08 against the kiwi.
Looking ahead, the German PPI for June is due to be released at 2:00 am ET. Eurozone current account data for May is also set to be published.
In the New York session, Canada wholesale trade sales data for may is slated for release.
At 2:30 pm ET, U.S. Treasury Secretary Jack Lew is expected to speak about the importance of financial reforms at the Better Markets’ event in Washington DC.
The market in Japan is closed in observance of Marine Day holiday.
The material has been provided by InstaForex Company – www.instaforex.com