Monday, the Australian dollar slumped to a 1-week low against the currencies of Europe and New Zealand despite a rise in regional stocks.
Meanwhile, the aussie eased from near a 5-month high against the greenback, 1-month high against the loonie and a 5-day high against the yen.
Asian stock markets mostly rose today, thanks to a positive close on Wall Street Friday on the back of encouraging wholesale trade data. A firm trend in metal prices, easing worries about Greece’s debt problems and expectations of a sustained global economic recovery were also aiding the surge.
European countries on Sunday offered a bailout package worth about EUR 45 billion or $61 billion to save sinking Greek economy as the after-effects of the financial crisis in the Mediterranean nation loomed over the entire Eurozone.
The rescue package includes mainly below-market interest rate loans of about three year maturity. Two thirds of the aid will come from the European countries and the rest will be contributed by the International Monetary Fund.
Australia’s S&P 200 index advanced 0.73% or 36.20 points to close at 4,984.30 and the All Ordinaries index was 0.78% higher or 38.70 at 5,011. 60.
At 2:50 am ET Monday, the Aussie slipped to a 1-week low of 1.4689 against the euro. The euro-aussie pair is currently worth 1.4676, compared to Friday’s close of 1.4462. If the Aussie slides further, it may likely target the 1.478 level.
At 2:50 am ET Monday, the Aussie plunged to a 1-week low of 1.3014 against the New Zealand dollar. The next downside target level for the Australian currency is seen at 1.286. The aussie-kiwi pair that closed Friday’s trading at 1.3057 is presently worth 1.3030.
At 2:50 am ET Monday, the Aussie touched 86.76 against the yen, down from a 5-day high of 87.37 hit in early Asian deals. If the aussie drops further, it may likely target the 85.8 level. The aussie-yen pair is presently trading at 86.86, compared to last week’s close of 86.99.
The Aussie that jumped to near a 5-month high of 0.9384 against the US currency in early Monday Asian deals at 7:00 pm ET fell thereafter and extended its downtrend for the subsequent hours. At present, the aussie-greenback pair is worth 0.9290 with 0.923 seen as the next target level. The pair closed last week’s trading at 0.9338.
The Aussie that soared to a 1-month high of 0.9420 against the Canadian dollar in early Monday Asian deals at 6:05 pm ET pared its gains thereafter. As of now, the aussie-loonie pair is worth 0.9354, compared to Friday’s close of 0.9376. The next downside target level for the pair is seen at 0.928.
Looking ahead, the Italian industrial production report for February is due in the upcoming European session.
The Canadian housing starts and the U.S. monthly budget statement- both for March have been slated for release in the North American session.