Australian Dollar Falls On U.S. Trump Tariff Threats
12 November 2024 - 1:10AM
RTTF2
The Australian dollar weakened against other major currencies in
the Asian session on Tuesday, amid concerns about possible tariffs
on Chinese imports by U.S. President-Elect Donald Trump.
Markets are nervous as they seek clarity on U.S. President-elect
Donald Trump's policy proposals, including increased tariffs, and
await key U.S. inflation reading later in the week for directional
cues.
Though the markets are optimistic that Trump's policies such as
tax reductions and deregulation will help boost corporate earnings,
they see an uptick in inflation amid proposed increase in tariffs
that will complicate the US Fed's interest-rate plans.
Weakness in mining stocks amid tumbling metal prices, also led
to the downtrend of the currency.
Crude oil closed sharply lower, weighed down by a stronger
dollar and concerns about demand. West Texas Intermediate Crude oil
futures for December ended down $2.34 or 3.6 percent at $68.04 a
barrel.
In the Asian trading today, the Australian dollar fell to a
6-day low of 0.6550 against the U.S. dollar, from yesterday's
closing value of 0.6574. On the downside, 0.63 is seen as the next
support level for the aussie.
Against the yen and the euro, the aussie slipped to 100.56 and
1.6248 from Monday's closing quotes of 101.05 and 1.6201,
respectively. If the aussie extends its downtrend, it is likely to
find support around 99.00 against the yen and 1.66 against the
euro.
Against the Canada and the New Zealand dollars, the aussie edged
down to 0.9135 and 1.0997 from yesterday's closing quotes of 0.9154
and 1.1021, respectively. The next possible downside target for the
aussie is seen around 0.90 against the loonie and 1.08 against the
kiwi.
Looking ahead, Germany CPI data for October and U.K. jobs data
for October, are due to be released in the pre-European
session.
In the European session, Germany ZEW economic sentiment for
November is set to be released.
In the New York session, U.S. NFIB business optimism index for
October, Canada building permits for September, U.S. Redbook
report, U.S. consumer inflation expectations for October are slated
for release.
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