2019.11.1106:30:00UTC+00Australian Dollar Drops Amid Rising Risk Aversion

The Australian dollar declined against its major counterparts in the Asian session on Monday, as uncertainty about a U.S.-China trade deal and rising political turmoil in Hong Kong dampened investor sentiment.

According to reports, at least two protesters were injured in Hong Kong after police opened fire at mass demonstrations in the city.

Weak China producer price index fanned concerns over global growth.

Although China's consumer price index grew at its fastest pace in about eight years, a measure of producer prices fell the most in more than three years in October, underscoring the problem of moderating demand.

The aussie dropped to a session's low of 0.6848 against the greenback and held steady thereafter. The aussie is seen finding support around the 0.67 region.

The aussie fell to a 4-day low of 74.61 against the yen from Friday's closing value of 74.90. The next likely support for the aussie is seen around the 72.5 region.

Data from the Cabinet Office showed that Japan core machinery orders declined unexpectedly in September.

Core machinery orders, a leading indicator of private capital investment, declined 2.9 percent month-on-month, following a 2.4 percent drop in August.

The aussie edged lower to 1.6094 against the euro from last week's closing value of 1.6057. If the aussie falls further, it may find support around the 1.63 level.

The aussie slipped to 0.9061 against the loonie and held steady thereafter. On the downside, 0.89 is possibly seen as the next support level for the aussie.

The aussie weakened to a 6-day low of 1.0794 against the kiwi from Friday's closing value of 1.0834. The aussie may challenge support around the 1.05 level.

Figures from Statistics New Zealand showed that New Zealand retail card spending declined for the first time in five months, driven by hardware and appliances sales.

Retail card spending fell 0.6 percent on month in the October, after a 0.2 percent rise in September.

Looking ahead, U.K. GDP data for the third quarter, industrial production, trade data and construction output for September are due in the European session.