Forex News: Commodity Currencies Fall As Most Asian Markets Traded

Commodity Currencies Fall As Most Asian Markets Traded Lower

(RTTNews) - Commodity currencies such as the Australian, the New Zealand and the Canadian dollars weakened against their major counterparts in the Asian session on Thursday, as investors are reluctant to make significant moves ahead of the release of the closely watched U.S. monthly jobs report on Friday.

The jobs data could have a significant impact on the outlook for interest rates, as the U.S. Fed has warned about labor market tightness.

The Fed Chair Jerome Powell said the Fed would be prepared to reaccelerate the pace of rate hikes if the totality of incoming data were to indicate that faster tightening is warranted.

Investor sentiment weighed on risk after the U.S. President Joe Biden proposed tax hikes on billionaires, rich investors and corporations, in his budget proposal for 2024, to be published on Friday.

Crude oil prices slipped on the day, extending losses from the previous session amid concerns about outlook for energy demand following Powell's remarks to Congress. West Texas Intermediate Crude oil futures for April ended lower by $0.92 or 1.2 percent at $76.66 a barrel.

In economic news, the Australian Bureau of Statistics showed that the total number of building permits issued in Australia was down a seasonally adjusted 27.6 percent month-on-month in January, standing at 12,065. That was in line with expectations following the 15.3 percent increase in December.

On a yearly basis, total permits fell 8.4 percent; permits for houses dropped 12.0 percent; and permits for non-houses eased 0.3 percent. The seasonally adjusted estimate for the value of total building approved fell 18.6 percent in January, following a 1.0 percent rise in December.

Data from the National Bureau of Statistics showed that the consumer prices in China were up 1.0 percent on year in February. That was shy of expectations for an increase of 1.9 percent and down sharply from the 2.1 percent gain in January.

On a monthly basis, consumer prices slumped 0.5 percent versus forecast for an increase of 0.2 percent after climbing 0.8 percent in the previous month.

The bureau also said that producer prices dropped 1.4 percent on year versus expectations for a decline of 1.3 percent after sinking 0.8 percent a month earlier.

In the Asian session today, the Australian dollar fell to a 2-week low of 90.15 against the yen, from yesterday's closing value of 90.48. The next support level for the aussie is seen around the 89.00 area.

Against the U.S. dollar and the euro, the aussie dropped to 0.6576 and 1.6024 from yesterday's closing of 0.6588 and 1.5999, respectively. If the aussie extends its downtrend, it is likely to find support around 0.64 against the greenback, and 1.61 against the euro.

Against the New Zealand and Canadian dollars, the aussie slipped to 1.0777 and 0.9085 from recent highs of 1.0791 and 0.9102, respectively. The aussie may find support around 1.05 against the kiwi and 0.89 against the loonie.

The NZ dollar fell to more than a 2-week low of 83.58 against the yen from a recent high of 83.95. The kiwi may find support around the 81.00 level.

Against the U.S. dollar and the euro, the kiwi dropped to 1.6098 and 1.7279 from recent highs of 1.6116 and 1.7248, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.59 against the greenback, and 1.73 against the euro.

The Canadian dollar fell to nearly a 5-month low of 1.3817 against the U.S. dollar from a recent high of 1.3795. The next support level for the loonie is seen around 1.39 against the greenback.

Against the yen, the loonie slipped to nearly a 2-week low of 98.08 from yesterday's closing value of 99.46. The loonie may find its support level around the 97.00 area.

Against the euro, the loonie edged lower to 1.4568 from yesterday's closing value of 1.4548. If the loonie extends its downtrend, it is likely to find support around the 1.46 area. Looking ahead, U.S. jobless claims data is due for release in the New York session.

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