Forex News: Commodity Currencies Slide

Commodity Currencies Slide

(RTTNews) - The commodity currencies such as Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the Asian session on Tuesday, due to a sharp drop in commodity prices.

Crude oil prices eased, declining for the third consecutive session on concerns about the outlook for oil demand and renewed hopes of a ceasefire in Gaza.

West Texas Intermediate Crude oil futures for August ended down $0.35 or at $79.78 a barrel.

In the Asian trading today, the Australian dollar fell to more than a 5-week low of 103.61 against the yen and a 1-1/2-month low of 1.6427 against the euro, from yesterday's closing quotes of 104.16 and 1.6402, respectively. If the aussie extends its downtrend, it is likely to find support around 100.00 against the yen and 1.66 against the euro.

Against the U.S. and the Canadian dollars, the aussie slipped to nearly a 4-week low of 0.6628 and nearly a 3-week low of 0.9124 from Monday's closing quotes of 0.6639 and 0.9137, respectively. The aussie may test support near 0.64 against the greenback and 0.90 against the loonie.

The NZ dollar fell to nearly a 3-month low of 0.5964 against the U.S. dollar, a 2-1/2-month low of 93.22 against the yen and an 8-month low of 1.8257 against the euro, from yesterday's closing quotes of 0.5976, 93.78 and 1.8219, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.58 against the greenback, 92.00 against the yen and 1.83 against the euro.

Against the euro, the kiwi edged down to 1.1125 from Monday's closing value of 1.1108. The kiwi is likely to find support near the 1.12 against the aussie.

The Canadian dollar fell to a 1-1/2-month low of 113.49 against the yen and an 8-month low of 1.4996 against the euro, from yesterday's closing quotes of 114.02 and 1.4985, respectively. If the loonie extends its downtrend, it is likely to find support around 111.00 against the yen and 1.50 against the euro.

Against the U.S. dollar, the loonie edged down to 1.3771 from Tuesday's closing value of 1.3762. The loonie is likely to find support near the 1.38 region.

Looking ahead, U.S. Redbook report, U.S. flash consumer confidence for July, existing homes sales for June and U.S. Richmond Fed manufacturing index for July are slated for release in the New York session.

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