Monday in Asia, the Aussie tumbled to multi-day lows against its US, Japanese and Canadian counterparts as a fall in stock prices reduced demand for higher-yielding currencies. The aussie also edged down against the euro.
The Australian stock market is trading lower today, snapping a five-day gaining streak, following a triple-digit loss on Wall Street Friday. In the local market, resource stocks were hit by weaker commodity prices. In early trading, the benchmark S&P/ASX 200 index is losing 47 points or 1.27% to 3,626, after closing more than half a percent higher on Friday. The broader All Ordinaries index is down 42 points or 1.16% to 3,574.
On the economic front, the Housing Industry Association Economics Group's latest survey shows that total new-home sales in the month of February increased 3.9% on month.
The Aussie, which closed last week's trading at 0.6939 against the US currency, fell to a 10-day low of 0.6863 during Asian deals on Monday. On the downside, 0.664 is seen as the next target level for the Aussie.
In Asian trading on Monday, the Aussie slipped to a 5-day low of 0.8534 against the Canadian dollar. The next downside target level for the aussie is seen at 0.835. At Friday's close, the aussie-loonie pair was quoted at 0.8592.
The Aussie declined to a 1-week low of 67.06 against the yen in Asian deals on Monday. This may be compared to last week's closing value of 67.92. If the aussie-yen pair weakens further, it may likely target the 65.6 level.
The yen gained despite a disappointing economic report from Japan. Industrial output in Japan plummeted by 9.4 percent in February compared to the previous month, falling for the fifth straight month and marking the third-largest fall on record, the Ministry of Economy, Trade and Industry said today. That was slightly worse than forecasts that called for a decline of 9.0 percent following the 10.2 percent decline in January.
On an annual basis, industrial output dropped 38.4 percent versus forecasts of a 38.1 percent decline after the 31.0 percent retreat in the previous month.
During Asian deals on Monday, the Aussie dropped against the European currency. The euro-aussie pair that closed Friday's trading at 1.9169 is now worth 1.9320 with 1.945 seen as the next target level.
In the European session, the Euro-zone business, consumer and economic confidence reports-all for the month of March have been slated for release.
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