Commodity Currencies Decline Amid Risk Aversion After Weak China Data
December 13 2018 - 9:30PM
RTTF2
The commodity currencies such as Australian, New Zealand and
Canadian dollars slipped against their major opponents in the Asian
session on Friday amid risk aversion, as weaker-than-expected
Chinese data triggered worries about a slowdown in the world's
second largest economy.
China's industrial output and retail sales growth for the month
of November missed expectations, reinforcing worries about a
slowdown in the world's second largest economy amid trade tensions
with the U.S. China's retail sales grew at the weakest pace since
2003, while industrial output grew at its slowest pace in nearly
three years.
Data the National Bureau of Statistics showed that China
industrial production grew 5.4 percent year-on-year in November,
lower than the 5.9 percent forecast by economists.
Retail sales climbed 8.1 percent on year, falling short of
forecasts for a gain of 8.8 percent.
The aussie slipped to a 3-day low of 81.43 against the yen, from
a high of 82.13 hit at 5:00 pm ET. The aussie is likely to find
support around the 80.00 region.
The Australian currency weakened to 4-day lows of 0.7179 against
the greenback, 1. 5822 against the euro and 0.9598 against the
loonie, off its early highs of 0.7228, 1.5711 and 0.9650,
respectively. The next possible support for the aussie is seen
around 0.70 against the greenback, 1.60 against the euro and 0.94
against the loonie. Reversing from its early highs of 0.6862
against the greenback and 1.6545 against the euro, the kiwi slipped
to more than 2-week lows of 0.6791 and 1.6728, respectively. The
kiwi is seen finding support around 0.66 against the greenback and
1.69 against the euro.
The kiwi slid to a 4-day low of 77.05 against the yen and a
9-day low of 1.0587 against the aussie, from its early highs of
77.97 and 1.05201, respectively. On the downside, 76.00 and 1.07
are likely seen as the next support levels for the kiwi against the
yen and the aussie, respectively.
The loonie followed a similar trend, falling to 1.3373 against
the greenback, 1.5191 against the euro and 84.83 against the yen,
reversing from its early highs of 1.3346, 1.5158 and 85.12,
respectively. If the loonie falls further, 1.35, 1.53 and 83.00 are
possibly seen as its support levels against the greenback, the euro
and and the yen, respectively.
Looking ahead, PMIs from major European economies are due in the
European session.
In the New York session, U.S. retail sales and industrial
production for November, business inventories for October and
Markit's preliminary services PMI for December are scheduled for
release.
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