Commodity Currencies Slide Amid Risk Aversion

(RTTNews) - Commodity currencies such as Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the Asian session on Thursday amid risk aversion, as investors became cautious to a slew of economic data emerging from the region, including from Australia, Japan and China. They also reacted to tamer than expected U.S. consumer price inflation data, reinforcing expectations the U.S. Fed is done raising interest rates.

Crude oil prices tumbled after data showed a sharp increase in U.S. crude stockpiles and a big jump in crude production. West Texas Intermediate Crude oil futures for December lost $1.60 or 2 percent at $76.66 a barrel, falling for the first time in five sessions.

Meanwhile, the Australian dollar slightly rose against its major after the release of Australia's jobs data. Thereafter, the currency started reversing.

In economic news, the jobless rate in Australia came in at a seasonally adjusted 3.7 percent in October, the Australian Bureau of Statistics said on Thursday. That was in line with expectations and up from 3.6 percent in September. The Australian economy added 55,000 jobs last month, blowing away forecasts for an increase of 20,000 jobs following the addition of 6,700 jobs in the previous month. The participation rate improved to 67.0 percent, beating forecasts for 66.7 percent, which would have been unchanged from September. In the Asian trading today, the Australian dollar fell to a 2-day low of 1.6770 against the euro, from yesterday's closing value of 1.6669. The aussie may test support around the 1.69 area.

Against the U.S. and the Canadian dollars, the aussie dropped to 2-day lows of 0.6461 and 0.8859 from Wednesday's closing quotes of 0.6512 and 0.8910, respectively. If the aussie extends its downtrend, it is likely to find support around 0.63 against the greenback and 0.87 against the loonie.

The aussie edged down to 97.75 against the yen, from yesterday's closing value of 98.46. On the downside, 95.00 is seen as the next support level for the aussie.

The NZ dollar fell to 2-day lows of 1.8153 against the euro and 90.31 against the yen, from yesterday's closing quotes of 1.8005 and 91.16, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.83 against the euro and 87.00 against the yen.

Against the U.S. and the Australian dollars, the kiwi slipped to 2-day lows of 0.5971 and 1.0833 from Wednesday's closing quotes of 0.6029 and 1.0802, respectively. The kiwi is likely to find support around 0.58 against the greenback and 1.09 against the aussie.

The Canadian dollar fell to a 2-day low of 1.3713 against the U.S. dollar, from yesterday's closing value of 1.3684. On the downside, 1.38 is seen as the next support level for the loonie.

Against the yen and the euro, the loonie dropped to 110.31 and 1.4861 from Wednesday's closing quotes of 110.50 and 1.4852, respectively. If the loonie extends its downtrend, it is likely to find support 108.00 against the yen and 1.49 against the euro.

Looking ahead, Canada housing starts for October, U.S. weekly jobless claims, U.S. export and import prices data for October, U.S. industrial and manufacturing productions data for October and U.S. NAHB housing market index for November are due to be released in the New York session.