Currency Alerts
11/5/2009 12:18 AM ET
(RTTNews) -
During early Asian deals on Thursday, the Australian dollar edged down against its major counterparts as a fall in most Asian stock prices reduced demand for higher-yielding currencies.
Asian stock markets are mostly down in the red today with investors treading cautiously on concerns over the pace of a global economic recovery. The start was fairly decent in most markets in the region, but stocks failed to gather enough support to sustain at higher levels. Lack of positive surprises from the U.S. Federal Reserve, which left key rates unchanged at historic levels and caution ahead of rate decisions by Bank of England and the European central bank appear to be holding the investors away on the sidelines.
The Australian market got off to a positive start but faltered soon as investors pressed sales in materials, technology and consumer staples stocks. Energy and bank stocks also surrendered early initiative and drifted lower.
The benchmark S&P/ASX 200 index is currently trading at 4,507, down 33.1 points, or 0.7%, from its previous close. The broader All Ordinaries index is down 27.3 points, or 0.6%, at 4,521.
The aussie fell despite a report showed that Australia's trade deficit was narrower than expected in September.
The Australian Bureau of Statistics announced today that Australia's trade deficit widened less than expected in September, with both imports and exports on the rise. Nevertheless, September marked the fifth successive month in which Australia has posted a trade deficit.
The trade deficit rose to a seasonally adjusted A$1.85 billion in September from a revised A$1.65 billion deficit in the previous month, although it was smaller than the A$2.15 billion deficit expected by economists. September's deficit was the largest deficit recorded since March 2008.
Exports of goods and services rose 5% on month to A$20.21 billion in September. Of this, exports of non-monetary gold soared 64%, while exports of rural goods fell 3%. Exports of non-rural goods rose 2% and services credits climbed 3%.
Against the US dollar, the Australian currency edged down during early Asian deals on Thursday. At 10:40 pm ET, the aussie-dollar pair touched a low of 0.9044, compared to 0.9104 hit late New York Wednesday. The next downside target level for the pair is seen around 0.884.
The Australian dollar that closed Wednesday's North American session at 1.6334 against the European currency slipped to 1.6402 during today's early Asian deals. If the Australian currency falls further, 1.657 is seen as the next target level. The euro-aussie pair is currently trading at 1.6381.
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