The Australian dollar continued to be weaker against the other major currencies in the Asian session on Wednesday amid rising risk aversion due to weak cues from Wall Street and a decline in crude oil prices. Crude oil prices fell on Tuesday amid concerns about rising global supplies.
In other economic news, data from the National Bureau of Statistics showed that the consumer prices in China were up 1.6 percent on year in September. That was shy of forecasts for an increase of 1.8 percent and down from 2.0 percent in August.
The bureau also said that producer prices fell 5.9 percent on year,in line with expectations and unchanged from the previous month.
Separate data from Westpac Bank showed that consumer confidence in Australia advanced in October, rising 4.2 percent to a score of 97.8. That follows the 5.6 percent decline in September to a reading of 93.9. The index remains beneath the boom-or-bust line of 100 that separates optimism from pessimism.
Tuesday, the Australian dollar fell against its major rivals due to a tumble in crude oil prices and weak Chinese import data. The Australian dollar fell 1.58 percent against the U.S. dollar, 1.83 percent against the yen, 0.97 percent against the euro, 1.31 percent against the Canadian dollar and 0.47 percent against the NZ dollar.
In the Asian trading, the Australian dollar fell to more than a 4-month low of 1.0824 against the NZ dollar and an 8-day low of 1.5822 against the euro, from yesterday’s closing quotes of 1.0903 and 1.5704, respectively. If the aussie extends its downtrend, it is likely to find support around 1.05 against the kiwi and 1.62 against the euro.
Against the U.S. dollar, the yen and the Canadian dollar, the aussie dropped to 6-day lows of 0.7198, 86.08 and 0.9378 from yesterday’s closing quotes of 0.7244, 86.74 and 0.9442, respectively. The aussie may test support near 0.70 against the greenback, 84.00 against the yen and 0.92 against the loonie.
Looking ahead, U.K.unemployment data and claimant count rate for September, Eurozone industrial production for August and Swiss ZEW economic expectation survey results for October are due to be released later in the day.
In the New York session, U.S. advance retail sales data and PPI, both for September and U.S. business inventories for August are set to be published.
Bank of England Chief Economist Andy Haldane is due to give a lecture at the Surrey University in GUILDFORD, England at 1:00 pm ET.
An hour later, U.S. Federal Reserve releases is set to release its Beige Book report.
The material has been provided by InstaForex Company – www.instaforex.com