The Australian dollar has dropped to the lowest level in five weeks, as Asian stock markets retreated as chip-makers companies dropped after Applied Materials Inc. has released its forecasts for the first half profit and sales, which noted that earnings will miss analysts' estimates, adding to concern a slower global recovery will reduce earnings.
Amid the global recovery will decline during the period, along with the European debt crisis, reducing the demand for higher yielding currencies such as the Australian dollar and the New Zealand dollar.
The AUD/USD pair dropped during the first hours of today's session, which recorded a low of 1.0487 and a high of 1.0559.
Turning to the NZD/USD pair also dropped, recorded the lowest level at 0.7913 and the highest level at 0.7977.
On the other hand, the Japanese yen has dropped slightly after the Japanese trade balance deficit expanded in April, as the nation's exports slumped sharply due to the massive March quake.