Currencies of Australia and New Zealand edged lower on Friday morning in Asia as weak macroeconomic support from the U.S. overnight prompted traders cutting riskier assets down.
Traders sold off risk-associated assets on the heels of the release of disappointing economic reports from the U.S., including a report from the Labor Department showing a bigger than expected increase in initial jobless claims in the week ended May 11th.
The report said initial jobless claims rose to 360,000, an increase of 32,000 from the previous week's revised figure of 328,000. Economists had expected jobless claims to climb to 330,000.
The Philadelphia Federal Reserve also released a report showing an unexpected contraction in regional manufacturing activity in May.
The report showed that the index of current activity fell to a negative 5.2 in May from a positive 1.3 in April, with a negative reading indicating a contraction in regional manufacturing activity. The drop came as a surprise to economists.
A separate report from the Commerce Department showed that housing starts tumbled 16.5 percent to a seasonally adjusted annual rate of 853,000 in April.
On the other hand, the report also showed that building permits, an indicator of future housing demand, jumped 14.3 percent to an annual rate of 1.017 million in April.
The Labor Department also released a report showing that consumer prices fell by slightly more than expected in April amid a sharp drop in energy prices.
The Australian dollar has been trading lower since Tuesday's Federal budget announced a larger than expected $18 billion budget deficit for the next financial year.
Core machine orders in Japan surged a seasonally adjusted 14.2 percent on month in March to 793.1 billion yen, shattering forecasts for an increase of 3.5 percent following the downwardly revised 4.2 percent increase in February. On a yearly basis, core machine orders added 2.4 percent.
Output producer prices for New Zealand gained 0.8 percent in the first quarter of 2013 compared to the previous three months, Statistics New Zealand said today. That topped expectations for a flat reading following the 0.1 percent decline in the previous three months.
Input producer prices also added 0.8 percent on quarter versus forecasts for a 0.2 percent increase following the 0.3 percent contraction in the three months prior. On a yearly basis, output prices were up 0.1 percent and input prices were flat.
The Australian dollar slipped to 0.9752 against the US dollar, its weakest level since June 2012 and was down almost 0.6 percent from Thursday's North American close of 0.9807. The next likely technical support for the aussie-buck pair is seen around the 0.97 level.
The Australian dollar fell to more than a 2-week low of 99.78 against the yen, shedding 0.5 percent from Thursday's close of 100.29. The next probable support for the aussie-yen pair is seen around the 99.30 level.
The Australian currency stayed below parity against the Canadian dollar for the second consecutive day on Friday, falling as low as 0.9958, its weakest level since October 2012. The next bearish barrier for the aussie-loonie pair is seen around the 0.9920 area.
The aussie slipped to 1.3185 against the euro, its lowest level since February 1. If the aussie extends downtrend, 1.32 is seen as the next likely support level in the near-term.
The New Zealand dollar hit back to below the key 0.81 level against the US dollar, falling as low as 0.8091, its weakest level since November 2012. The next downside target for the kiwi-buck pair is seen around the 0.8050 level.
The New Zealand dollar slipped to a 9-day low of 82.77 against the yen, compared to 83.37 hit late New York Thursday. If the NZ dollar extends downtrend, 82.30 is seen as the next likely support level.
The New Zealand dollar fell to a fresh 2-month low of 1.5896 against the euro on Friday morning in Asia, shedding more than 100-pips or 0.6 percent from Thursday's close of 1.5793. If the kiwi extends downtrend, 1.5920 is seen as the next likely support level.
The New Zealand dollar also lost ground against its Tasman rival in early Asian deals on Friday. The kiwi dropped to a 2-day low of 1.2062 against the Australian dollar, compared to 1.2024 hit late New York Thursday. Further bearish extension could lead the NZ dollar testing the 1.21 support level.
Looking ahead, the eurozone construction output data for March is the lone economic data due out in the European session.
Canada's inflation data for April, University of Michigan's preliminary consumer confidence survey results for May and leading indicators for April are the key economic releases in the North American session.
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Forex News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.