CANBERA (dpa-AFX) - Commodity currencies such as the Australian, the New Zealand and the Canadian dollars weakened against their major counterparts in the Asian session on Wednesday, as oil prices fell after the news that Kuwaiti oil workers called off a three-day strike that had cut output from the Middle Eastern country. Meanwhile, data from industry group American Petroleum Institute showing rising U.S. stockpiles also weighed on oil prices.
Crude oil for June delivery are currently down $0.93 to $41.54 a barrel.
Kuwaiti oil and gas workers called off a three-day strike to protest cuts in pay and benefits as Middle Eastern crude exporters reduce subsidies and government handouts.
Data from API showed that U.S. crude stocks increased to 3.100 million barrels last week, from the 6.223 million barrels recorded in the preceding week
Tuesday, the Australian, the New Zealand and the Canadian dollars rose against their major rivals, as investor sentiment improved amid rising risk appetite following the stabilization in crude oil prices as Kuwait oil workers went on a strike.
The Australian dollar rose 0.86 percent against the U.S. dollar, 1.14 percent against the yen and 0.39 percent against the euro. The NZ dollar rose 1.39 percent against the U.S. dollar, 1.78 percent against the yen and 62.43 percent against the euro. The Canadian dollar rose 0.89 percent against the U.S. dollar, 1.63 percent against the yen and 0.56 percent against the euro.
In the Asian trading, the Australian dollar fell to a 2-day low of 1.4605 against the euro, from yesterday's closing value of 1.4535. The aussie may test support near the 1.49 area.
Against the U.S. dollar and the yen, the aussie dropped to 0.7783 and 84.80 from yesterday's closing quotes of 0.7812 and 85.29, respectively. If the aussie extends its downtrend, it is likely to find support around 0.75 against the greenback and 81.00 against the yen.
The aussie edged down to 0.9883 against the Canadian dollar, from an early high of 0.9909. On the downside, 0.97 is seen as the next support level for the aussie.
The NZ dollar fell to 0.7008 against the U.S. dollar and 76.38 against the yen, from yesterday's closing quotes of 0.7039 and 76.87, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.67 against the greenback and 73.00 against the yen.
Against the euro, the kiwi dropped to 1.6209 from an early 3-month high of 1.6095. The kiwi is likely to find support near the 1.65 region.
The kiwi edged down to 1.1118 against the Australian dollar, from yesterday's closing value of 1.1076. On the downside, 1.13 is seen as the next support level for the kiwi.
The Canadian dollar fell to 1.2712 against the U.S. dollar and 85.69 against the yen, from yesterday's closing quotes of 1.2669 and 86.16, respectively. If the loonie extends its downtrend, it is likely to find support around 1.32 against the greenback and 83.00 against the yen.
Against the euro, the loonie edged down to 1.4456 from yesterday's closing value of 1.4377. The loonie may test support near the 1.47 region.
Looking ahead, the German PPI for March is due to be released in the pre-European session at 2:00 am ET.
U.K. unemployment data for February and Swiss ZEW economic expectations index for April are slated for release later in the day.
At 6:00 am ET, European Central Bank President Mario Draghi is expected to speak at the ECB Generation Euro competition, in Frankfurt.
In the New York session, Canada wholesale sales data for February, U.S. existing home sales data for March and U.S. crude oil inventories data are set to be published.
At 9:00 am ET, Bank of England External BOE MPC Member Ian McCafferty is scheduled to speak at the Bank of England, in London.
At 4:15 pm ET, Bank of Canada Governor Stephen Poloz and Deputy Governor Carolyn Wilkins will testify before the House of Commons Senate Banking Committee, in Ottawa.
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