empty
 
 

2021.05.1307:22:00UTC+00Australian Dollar Falls On Weak Asian Shares

The Australian dollar slipped against its major counterparts in the Asian session on Thursday, as Asian markets followed Wall Street lower after a jump in U.S. consumer prices triggered concerns over whether the Federal Reserve would move to a tighter monetary policy sooner than expected.

Expectations for a Fed rate hike has been pushed forward, with investors pricing in an 80 percent chance of an increase as early as December next year.

Yields on 10-year Treasuries steadied at 1.68 percent, after having climbed 7 basis points overnight in the biggest daily rise in two months.

But Fed officials played down risk of inflation, with vice chair Richard Clarida saying the spike was largely driven by transitory forces.

Oil prices retreated as Colonial Pipeline has restarted its operations, after a cyberattack that forced it to shut down last Friday.

The aussie dropped to 0.7706 against the greenback, setting a 1-week low. If the aussie falls further, it is likely to test support around the 0.75 region.

The aussie declined to a 1-week low of 84.56 against the yen from Wednesday's close of 84.65. The aussie is seen facing support around the 81.5 mark.

The aussie weakened to more than a 6-month low of 0.9351 against the loonie, while touching 1.5666 against the euro, its lowest level in a month. The next possible support for the aussie is seen around 0.92 against the loonie and 1.61 against the euro.

The aussie hit a session's low of 1.0770 against the kiwi, down from Wednesday's close of 1.0785. The aussie may locate support around the 1.06 level.

Data from Statistics New Zealand showed that New Zealand food prices climbed an unadjusted 1.1 percent on month in April; seasonally adjusted, food prices rose 0.7 percent.

On a yearly basis, food prices gained 0.7 percent.

Looking ahead, the U.S. weekly jobless claims for the week ended May 8 and PPI for April will be featured in the New York session.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback