The Australian dollar showed weakness on Tuesday in Asia following the release of the nation's wider-than-expected trade deficit in November.
Australia posted a seasonally adjusted merchandise trade deficit of A$2.637 billion in November, the Australian Bureau of Statistics said today.
That was shy of forecasts for a shortfall of A$2.30 billion following the downwardly revised deficit of A$2.443 billion in October (originally A$2.088 billion).
Exports were up 1.0 percent on month to A$24.681 billion from the revised A$24.396 billion in the previous month.
Imports climbed 2.0 percent to A$27.318 billion from the revised A$26.840 billion a month earlier.
Elsewhere, the Australian Industry Group said that an index measuring construction activity in Australia came in with a score of 38.8 in December.
That's up from 37.0 in November, but it remains significantly below the boom-or-bust level of 50 that separates expansion from contraction.
Uncertainty about the upcoming earnings season in the U.S. weighed on risk-sentiment, with aluminum giant Alcoa (AA) due to release its quarterly results after the close of trading later today.
The Australian dollar reached a 5-day low of 1.2526 against the euro, having retreated from Monday's fresh 3-week high of 1.2411.
The near-to-medium term biases are bearish for the aussie as the EUR/AUD trend line support shows further upward momentum above 1.26.
The Australian dollar depreciated 1.2 percent to a 4-day low of 91.72 against the yen from yesterday's multi-year high of 92.86.
The present corrective trend may soon alter for the aussie-yen pair as its long-term bias is bullish with 93.50 seen as the next likely target level.
The Australian dollar that advanced to a 5-day high of 1.0519 against the US dollar at the beginning of Tuesday's Asian trading erased gains shortly after the release of the trade data. The aussie-greenback pair shed almost 30-pips post-trade data, also down almost 20-pips from Monday's close of 1.0506.
The Australian currency reached as much as yesterday's multi-day lows against the New Zealand dollar following the trade data, falling as low as 1.2543, down from 1.2552 hit late New York Monday.
The near-term outlook for the aussie-kiwi pair is bearish as the cross is heading toward the support line of a descending triangle with 1.25 seen as the next likely target level.
Traders look forward to important economic data for direction in the upcoming European session, at which the German trade data and factory orders-both for November, euro-zone consumer confidence for December, retail sales and unemployment for November are scheduled for release.
The U.S. consumer credit for November is the lone data to watch in the North American session. However, the key focus would be towards the earnings result of Alcoa which is due out after the close of the North American stock market.
by RTT Staff Writer
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