Commodity Currencies Slide As Asian Markets Traded In Negative Territory

Commodity currencies such as the Australian, the New Zealand and the Canadian dollars weakened against their major counterparts in the Asian session on Friday. Asian stock markets are in negative territory on Friday following the mixed cues overnight from Wall Street and as investors focused on regional corporate earnings results.

In other economic news, data from the Australian Bureau of Statistics showed that the final demand producer prices in Australia climbed 0.5 percent on quarter in the second quarter of 2017, unchanged from the previous three months. On a yearly basis, producer prices jumped 1.7 percent, accelerating from 1.3 percent in the three months prior.

Domestic prices were up 0.6 percent on quarter and 2.2 percent on year, while import prices added 0.2 percent on quarter but fell 1.7 percent on year.

Thursday, the Australian and the New Zealand dollars had risen against their major counterparts. The Australian dollar rose 0.64 percent against the the U.S.dollar, 0.39 percent against the yen and 0.02 percent against the euro. The NZ dollar rose 0.38 percent against the the U.S.dollar, 0.32 percent against the yen, and 0.07 percent against the euro.

Meanwhile, the Canadian dollar had fallen 0.25 percent against the the U.S.dollar, 0.75 percent against the yen, and 0.32 percent against the euro.

In the Asian trading, the Australian dollar fell to 2-day lows of 0.7953 against the U.S. dollar and 1.4685 against the euro, from yesterday's closing quotes of 0.7967 and 1.4652, respectively. If the aussie extends its downtrend, it is likely to find support around 0.77 against the greenback and 1.48 against the euro.

Against the yen, the aussie edged down to 88.37 from yesterday's closing value of 88.64. The aussie may test support near the 87.00 region.

The NZ dollar fell to 2-day lows of 0.7470 against the U.S. dollar, 82.97 against the yen and 1.5642 against the euro, from yesterday's closing quotes of 0.7486, 83.29 and 1.5593, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.72 against the greenback, 82.00 against the yen, and 1.58 against the euro.

Against the Australian dollar, the kiwi dropped to 1.0661 from an early 4-day high of 1.0618. The kiwi is likely to find support around the 1.07 region.

The Canadian dollar fell to more than a 2-week low of 1.4691 against the euro and a 4-day low of 88.33 against the yen, from yesterday's closing quotes of 1.4652 and 88.64, respectively. If the loonie extends its downtrend, it is likely to find support around 1.48 against the euro and 87.00 against the yen.

Against the U.S. and the Australian dollars, the loonie dropped to 1.2567 and 1.0014 from yesterday's closing quotes of 1.2551 and 0.9998, respectively. On the downside, 1.27 against the greenback and 1.01 against the aussie are seen as the next support levels for the loonie.

Meanwhile, the safe-haven yen rose against its major rivals.

The yen rose to more than a 5-week high of 114.21 against the Swiss franc and a 3-day high of 145.01 against the pound, from yesterday's closing quotes of 115.29 and 145.35, respectively. If the yen extends its uptrend, it is likely to find resistance around 112.00 against the franc and 141.00 against the pound.

Against the euro and the U.S. dollar, the yen advanced to 129.55 and 110.92 from yesterday's closing quotes of 129.91 and 111.27, respectively. The yen may test resistance near 127.00 against the euro and 108.00 against the greenback.

Looking ahead, Eurozone business climate index for July is due to be released later in the day.

In the New York session, the German flash CPI data for July, Canada GDP data for May, U.S. GDP data for the second quarter, U.S. University of Michigan's final consumer sentiment index for July and U.S. Baker Hughes rig count data are slated for release.

At 1:20 pm ET, Federal Reserve Bank of Minneapolis President Neel Kashkari is expected to speak at a town hall event, in Minnesota.