Commodity currencies such as the Australian, the New Zealand and the Canadian dollars weakened against their major counterparts in the Asian session on Friday amid oil price slide on fears of oil price glut once additional Iranian oil production comes online.
Crude oil for February delivery are currently down $0.49 to $30.71 a barrel.
Thursday, the Australian, the New Zealand and the Canadian dollars fell against their major counterparts, as worries about global economic slowdown and the persistent weakness in crude oil prices increased risk aversion.
The Australian dollar fell 0.40 percent against the U.S. dollar, 0.74 percent against the yen and 1.02 percent against the euro. The NZ dollar fell 0.58 percent against the U.S. dollar, 0.24 percent against the yen and 1.88 percent against the euro. The Canadian dollar fell 0.11 percent against the U.S. dollar, 0.15 percent against the yen and 0.62 percent against the euro.
In the Asian trading, the Australian dollar fell to 0.6938 against the U.S. dollar, 81.61 against the yen and 1.5691 against the euro, from early 2-day highs of 0.7002, 82.80 and 1.5503, respectively. If the aussie extends its downtrend, it is likely to find support around 0.68 against the greenback, 80.00 against the yen and 1.59 against the euro .
Against the Canadian dollar, the aussie edged down to 0.9983 from an early near 2-week high of 1.0044. The aussie may test support near the 0.98 region.
The NZ dollar fell to more than a 5-week low of 1.0809 against the Australian dollar, from yesterday’s closing value of 1.0786. The kiwi is likely to find support around the 1.10 region.
Against the U.S. dollar, the yen and the euro, the kiwi dropped to 0.6429, 75.60 and 1.6936 from yesterday’s closing quotes of 0.6473, 76.42 and 1.6775, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.63 against the greenback, 75.00 against the yen and 1.72 against the euro.
The Canadian dollar fell to 1.5669 against the euro and 1.4392 against the U.S. dollar, from yesterday’s closing quotes of 1.5604 and 1.4366, respectively. If the loonie extends its downtrend, it is likely to find support around 1.57 against the euro and 1.44 against the greenback.
Against the yen, the loonie edged down to 81.71 from an early 2-day high of 82.44. On the downside, 80.00 is seen as the next support level for the loonie.
Looking ahead, U.K. construction output and Eurozone trade balance, both for November, are due to be released later in the day.
In the New York session, U.S. PPI, retail sales data and industrial production,all for December, U.S. business inventories data for November, U.S. Baker Hughes rig count data and the University of Michigan’s preliminary U.S. consumer sentiment index for January are slated for release.
At 9:00 am ET, Federal Reserve Bank of New York President William Dudley is expected to speak at the Economic Leadership Forum in New Jersey.
At 1:00 pm ET, Federal Reserve Bank of Dallas President Robert Kaplan is scheduled to participate in a moderated Q&A session before the Dallas Assembly Luncheon hosted by the Federal Reserve Bank of Dallas.
At 5:00 pm ET, Canadian Finance Minister Bill Morneau will engage in consultations ahead of the new Liberal government’s first federal budget at a townhall at the University of Calgary in Calgary, Canada.
The material has been provided by InstaForex Company – www.instaforex.com