Commodity Currencies Slide 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 Thursday, as Asian stock markets traded in negative territory following the mixed cues overnight from Wall Street, where the Dow Jones Industrial Average closed above the 22,000 level for the first time.

Investors are cautious ahead of the Bank of England’s interest rate decision due later in the day and Friday’s U.S. jobs data.

In other economic news, data from the Australian Bureau of Statistics showed that Australia posted a seasonally adjusted merchandise trade surplus of A$856 million in June, down 58 percent on month. The headline figure was well shy of forecasts for a surplus of A$1.80 billion and down sharply from the A$2.471 billion surplus in May.

Exports were down A$439 million or 1.0 percent on month to A$31.779 billion. Imports gained A$730 million or 2.0 percent to A$30.923 billion.

Data from the Australian Industry Group showed that the service sector in Australia continued to expand in July, and at an accelerated rate, with a Performance of Service Index score of 56.4. That’s up sharply from 54.8 in June,

Data from ANZ showed showed that New Zealand’s job advertisements decreased in July, after rebounding in the previous month. Total job ads fell a seasonally adjusted 1.0 percent month-over-month in July, reversing a 1.3 percent rise in June.

Data from Caixin showed that the services sector in China continued to expand in July, albeit at a fractionally slower pace, with a PMI score of 51.5. That’s down slightly from 51.6 in June.

The composite index moved to a four-month high of 51.9 in July after showing 51.1 in the previous month.

Wednesday, the Australian, the New Zealand and the Canadian dollars had fallen against their major counterparts. The Australian dollar fell 0.03 percent against the U.S. dollar, 0.29 percent against the yen and 0.43 percent against the euro. The NZ dollar fell 0.52 percent against the U.S. dollar, 0.19 percent against the yen and 0.93 percent against the euro. The Canadian dollar fell 0.31 percent against the U.S. dollar, 0.07 percent against the yen and 0.74 percent against the euro.

In the Asian trading, the Australian dollar fell to more than a 3-week low of 1.4957 against the euro and more than a 2-week low of 87.59 against the yen from yesterday’s closing quotes of 1.4879 and 88.22, respectively. If the aussie extends its downtrend, it is likely to find…

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