The Australian dollar was weaker in the Asian session on Tuesday in an extension of the downtrend that was visible for much of Monday’s session in the wake of weak Chinese import data, the U.S. dollar’s strength on rate hike expectations and lower commodity prices. A report showing a decline in business confidence in Australia did not make matters easier for the currency.
Data from the National Australia Bank earlier today showed that the business confidence index fell to 8 in August from a downwardly revised 10 in July (originally 11).
The index measuring business conditions also declined to 4 in August from 8 in July.
The Australian dollar fell to 98.28 against the yen, from an early high of 98.47. At yesterday’s close, the aussie was trading at 98.38 against the yen. If the aussie extends its downtrend, it is likely to find support around the 97.37 area.
Pulling away from an early high of 0.9287 against the U.S. dollar, the aussie depreciated to nearly a 3-week low of 0.9260. The aussie is likely to find support around the 0.922 region.
Against the euro and the Canadian dollar, the aussie edged down to 1.3908 and 1.0173 from early highs of 1.3883 and 1.0194, respectively. On the downside, the aussie may find support around 1.41 against the euro and 1.011 against the loonie.
Looking ahead, Japanese consumer confidence index for August is due in the Asian session.
At 2:00 am ET, Japan machine tool orders for August is due to be released.
In the New York session, Canadian housing starts data for August is due.