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 crude oil prices fell after the data from the American Petroleum Institute showed that crude oil stockpiles increased last week.
Crude oil for August delivery are currently down $0.47 to $46.33 a barrel.
The API report on Tuesday showed that crude oil stockpiles increased by 2.2 million barrels last week. Traders await the U.S. Energy Information Administration to release its official report on U.S. crude oil inventories later in the day.
In its monthly report released on Tuesday, OPEC said its production rose sharply in June.
The cartel noted increased output in Nigeria, Iran and Gulf nations.
Data from the latest survey from Westpac Bank and the Melbourne Institute revealed that consumer confidence in Australia took a hit in July, sliding 3.0 percent to a reading of 99.1. That follows the 1.0 percent decline in June to 102.2.
Tuesday, the Australian, the New Zealand and the Canadian dollars strengthened against their major rivals. The Australian dollar rose 1.08 percent against the U.S. dollar, 3.54 percent against the yen and 1.17 percent against the euro. The NZ dollar rose 0.27 percent against the U.S. dollar and 3.33 percent against the yen. The Canadian dollar rose 0.57 percent against the U.S. dollar, 3.13 percent against the yen and 0.53 percent against the euro.
Meanwhile, the NZ dollar fell against the euro.
In the Asian trading, the Australian dollar fell to 0.7585 against the U.S. dollar and 78.85 against the yen, from yesterday's closing quotes of 0.7622 and 79.78, respectively. The aussie may test support near 0.73 against the greenback and 74.00 against the yen.
Against the euro and the Canadian dollar, the aussie dropped to 1.4575 and 0.9922 from yesterday's closing quotes of 1.4507 and 0.9941, respectively. If the aussie extends its downtrend, it is likely to find support around 1.49 against the euro and 0.97 against the loonie.
The NZ dollar fell to 0.7252 against the U.S. dollar and 75.39 against the yen, from yesterday's closing quotes of 0.7296 and 76.37, respectively.If the kiwi extends its downtrend, it is likely to find support around 0.69 against the greenback and 69.00 against the yen.
Against the euro and the Australian dollar, the NZ dollar dropped to 1.5247 and 1.0470 from yesterday's closing quotes of 1.5133 and 1.0431, respectively. On the downside, 1.56 against the euro and 1.05 against the aussie are seen as the next support levels for the kiwi.
The Canadian dollar fell to 1.3083 against the U.S. dollar and 79.45 against the yen, from yesterday's closing quotes of 1.3042 and 80.26, respectively. If the loonie extends its downtrend, it is likely to find support around 1.31 against the greenback and 75.00 against the yen.
Against the euro, the loonie dropped to 1.4471, compared to Tuesday's closing value of 1.4425. The loonie is likely to find support around the 1.46 area.
Looking ahead, Eurozone industrial production for May is due to be released at 5:00 am ET.
At 6:00 am ET, Federal Reserve Bank of Philadelphia President Patrick Harker is expected to speak on the economic outlook before the 2016 World Class Summit: 10 Years to 2026 - 2200, in Philadelphia.
In the New York session, U.S. import price index for June and U.S. crude oil inventory data are slated for release.
At 9:00 am E, Federal Reserve Bank of Dallas President Robert Kaplan is expected to speak on "The U.S. and World Economy Today" before a moderated question-and-answer session hosted by the World Affairs Council of Greater Houston.
The Bank of Canada will announce its interest rate decision at 10:00 am ET. Economists expect the bank to retain interest rates unchanged at 0.50 percent.
At 2:00 pm ET, U.S. Federal Reserve issues the Beige Book of economic conditions in Washington. At the same time, the U.S.department of the treasury releases the monthly budget statement.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer
