Commodity currencies such as the Australian, the New Zealand and the Canadian dollars weakened against other majr currencies in the Asian session on Wednesday, as crude oil price fell after a report said OPEC produce rose in June despite the cartel’s supply quota plan.
Crude oil delivery for September is currently up by 0.33 percent or $48.83 per barrel.
OPEC oil output jumped by 90,000 barrels per day (bpd) to a 2017 high, a Reuters survey found.
Much of the increase was due to surging output from Libya. Supplies from Iraq also rose, helping to offset Saudi cuts.
Meanwhile, the NZ dollar fell after data showed that the overall employment in the nation fell more-than-expected on quarter.
Data from Statistics New Zealand showed that the overall employment in New Zealand fell 0.2 on quarter, missing forecasts for a gain of 0.7 percent following the 1.1 percent increase in the three months prior.
On a yearly basis, employment gained 3.1 percent, missing expectations for 4.1 percent and down from 5.7 percent in Q1.
The unemployment rate in New Zealand came in at a seasonally adjusted 4.8 percent in the second quarter of 2017. That was in line with expectations and down from 4.9 percent in the previous three months.
In other economic news, data from the Australian Bureau of Statistics showed that the total number of building approvals increased at a faster-than-expected pace in June, after declining in the previous month. The seasonally adjusted estimate for total dwellings approvals surged 10.9 percent month-over-month in June, reversing a 5.4 percent decrease in May. That was well above the 1.0 percent rise economists had forecast.
On a yearly basis, total building approvals dropped a seasonally adjusted 2.3 percent in June, much slower than the expected decline of 11.0 percent.
In the Asian trading, the Australian dollar fell to nearly a 3-week low of 1.4885 against the euro, from yesterday’s closing value of 1.4809. The aussie may test support near the 1.50 region.
Against the U.S. dollar and the yen, the aussie dropped to a 5-day low of 0.7941 and a 9-day low of 87.79 from yesterday’s closing quotes of 0.7969 and 87.96, respectively. If the currency extends its downtrend, it is likely to find support around 0.78 against the greenback and 86.00 against the yen.
The NZ dollar fell to more than a 2-month low of 1.5933 against the euro and more than a 2-week low of 81.89 against the yen, from yesterday’s closing quotes of 1.5799 and 82.42, respectively. If the…