Commodity Currencies Fall As Asian Stock Markets Traded In Negative Territory

Commodity currencies such as the Australian, the New Zealand and the Canadian dollars weakened against their major counterparts in the Asian session on Friday, as tensions continued to escalate between the U.S. and North Korea. President Trump further suggested that his “fire and fury” comments may not have been tough enough. Investors also digested local corporate earnings results.

Crude oil delivery for September is currently down 0.37 percent or $48.21 per barrel. The crude oil prices fell after OPEC admitted that its production rose in July despite a supply quota agreement with Russia. The cartel pumped oil at a relatively robust pace even as Saudi Arabia tried to get smaller members to comply.

In other economic news, data from Business NZ showed that the manufacturing sector in July continued to expand in July, though at a slower rate, with a Performance of Manufacturing Index score of 55.4. That’s down from the downwardly revised 56.0 in June.

Data from Statistics New Zealand showed that the food prices in New Zealand were down an unadjusted 0.2 percent on month in July, following the 0.2 percent gain in June. On yearly basis, food prices were up 3.0 percent for the second straight month.

Data from the Real Estate Institute of New Zealand showed that New Zealand’s house prices increased in July from a year ago, while the volume of sales plunged. The national median house price index rose 3.4 percent year-over-year to NZ$501,000 in July. However, median prices dropped 2.3 percent, month-on-month.

On a seasonally adjusted basis, national median prices grew 3.3 percent in July from a year ago.

In the Asian trading, the Australian dollar fell to a 1-month low of 1.5011 against the euro and a 1-1/2-month low of 85.45 against the yen, from yesterday’s closing quotes of 1.4948 and 86.00, respectively. If the aussie extends its downtrend, it is likely to find support around 1.51 against the euro and 84.00 against the yen.

Against the U.S. and the Canadian dollars, the aussie dropped to nearly a 4-week low of 0.7839 and a 2-day low of 0.9993 from yesterday’s closing quotes of 0.7872 and 1.0035, respectively. The aussie may test support near 0.76 against the greenback and 0.98 against the loonie.

The aussie edged down to 1.0786 against the NZ dollar, from yesterday’s closing value of 1.0819. On the downside, 1.05 is seen as the next support level for the aussie.

The NZ dollar fell to nearly a 3-month low of 1.6228 against the euro and nearly a 2-month low of…

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