Antipodean Currencies Fall Amid Oil Prices Slide
March 23 2017 - 10:05PM
RTTF2
Antipodean currencies such as the Australian and the New Zealand
dollars weakened against their major counterparts in the Asian
session on Friday, as crude oil prices fell amid concerns that the
OPEC's supply quota plan will not alleviate the global supply
glut.
Thursday, the U.S. EIA reported crude oil inventories jumped
another 4.5 million barrels to a record high.
Traders are looking ahead to Friday afternoon's U.S. oil rig
count from Baker Hughes. The rig count has been constantly rising
this winter.
Meanwhile, the crude oil price fell as the dollar firmed on rate
hike chatter and upbeat economic news.
Federal Reserve Bank of San Francisco President John Williams
told Wall Street Journal he expects the central bank to raise rates
three or four times this year.
Investors became cautious after U.S. lawmakers delayed a vote on
a healthcare bill intended to repeal and replace the Affordable
Care Act.
President Donald Trump is said to have demanded a House of
Representatives vote on the plan on Friday. House Republican
leaders delayed a planned Thursday night vote on the bill amid a
lack of support. If it fails, it could imperil President Donald
Trump's other policies such as tax reform and increased
infrastructure spending.
Thursday, the Australian dollar had fallen 0.63 percent against
the U.S. dollar, 0.86 percent against the yen and 0.19 percent
against the euro.
Meanwhile, the NZ dollar showed mixed trading against its major
rivals. The NZ dollar had fallen against the yen and held steady
against the U.S. dollar and the euro.
In the Asian trading, the Australian dollar fell to a 9-day low
of 0.7610 against the U.S. dollar, from yesterday's closing value
of 0.7626. The aussie may test support near the 0.74 region.
Against the euro, the yen and the Canadian dollar, the aussie
dropped to 1.4142, 84.68 and 1.0178 from yesterday's closing quotes
of 1.4136, 84.59 and 1.0181, respectively. If the aussie extends
its downtrend, it is likely to find support around 1.43 against the
euro, 83.00 against the yen and 1.00 against the loonie.
The NZ dollar fell to a 1-week low of 0.7007 against the U.S.
dollar and a 2-day low of 1.5361 against the euro, from yesterday's
closing quotes of 0.7029 and 1.5339, respectively. If the kiwi
extends its downtrend, it is likely to find support around 0.68
against the greenback and 1.55 against the euro.
Against the yen, the kiwi dropped to 77.98 from an early high of
78.29. The kiwi is likely to find support around the 76.00
region.
Against the Australian dollar, the kiwi edged down to 1.0874
from yesterday's closing value of 1.0843. On the downside, 1.10 is
seen as the next support level for the kiwi.
Looking ahead, flash PMI reports from major European economies
for March and U.K. BBA mortgage approvals for February are due
later in the day.
In the New York session, Canada CPI for February, U.S. durable
goods orders for February, Markit's U.S. flash manufacturing PMI
for March and U.S. Baker Hughes rig count data are slated for
release.
At 8:00 am ET, Federal Reserve Bank of Chicago President Charles
Evans is expected to speak at the Federal Reserve System Community
Development Research Conference, in Washington DC.
At 9:05 am ET, Federal Reserve Bank of St. Louis President James
Bullard will give a presentation on the U.S. economy and monetary
policy before the Economic Club of Memphis Economic Briefing, in
Memphis, U.S.
At 10:00 am ET, Federal Reserve Bank of New York President and
CEO William Dudley will participate in a fireside chat with
business and economics students at York College, in New York.
At 11:30 am ET, Canadian Finance Minister Bill Morneau will give
a speech in Toronto.
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