Australian Dollar Declines Against Majors

(RTTNews) - During the early Asian session on Tuesday, the Australian dollar declined against its major counterparts. The downtrend pushed the Aussie to fell to a 26-day low versus the Canadian dollar. On the other hand, the Aussie hit a 1-week low against the rest of majors. However, around 9:35 pm ET Monday, the major Aussie pairs started reversing the losses.

Deals in the session were likely influenced by the Australian preliminary BoP imports data for the month of August.

The Australian Bureau of Statistics said that the merchandise imports to Australia on a balance of payments basis increased a seasonally adjusted 7% in August, rebounded from a fall of 4% in July.

Japan's tertiary activity index for the month of July which was also released during the session weakened the Aussie versus the Yen.

As expected, Japan's tertiary industry activity index dropped a seasonally adjusted 0.5% to 109.7 in July from the previous month.

The market now turns toward the Bank of Japan's target rate decision. The central bank's current rate is 0.50%, and is expected to remain unchanged this time. German ZEW survey data for September is slated for 5:00 am ET.

The U.S. Producer price index data for August is expected later in the morning, followed by the FOMC rate decision at 2:15 pm ET. Economists expect the Fed to cut rates by 25 basis points to 5.00% in today's announcement.

The Australian dollar moved sideways against the U.S. currency in the early Asian deals on Tuesday. But by about 9:10 pm ET Monday, the Aussie fell sharply and touched a 1-week low of 0.8275. Thereafter, the pair strengthened slightly and it is currently trading near 0.832. The near term resistance level for the pair is seen around 0.836.

After moving briefly sideways, the Australian dollar lost ground versus the Euro during the early Asian session on Tuesday. The pair touched 1.6756 by about 9:35 pm ET Monday and this was the 1-week low for the Aussie. The Aussie then gained slightly and the pair has been trading at 1.666 as of now. The near term resistance level for the Aussie is seen around 1.662.

In the early Asian deals on Tuesday, the Aussie rallied against the Canadian dollar. However, at about 8:05 pm ET Monday, the pair edged down and thus the pair moved from 0.8579 to 0.8513, which sets a 26-day low for the Aussie. The pair then traded sideways and it is currently trading near 0.853. The next downside target for the Aussie is seen around 0.827.

The Australian dollar ticked down versus the Japanese Yen in the early Asian deals on Tuesday. After hitting a 1-week low of 95.00 at 9:35 pm ET Monday, the Aussie advanced slightly. As of now, the pair has been trading near 95.6 with the next target level seen around 96.9.