Australian Dollar Falls Amid Risk Aversion

The Australian dollar drifted lower against its major counterparts in the Asian session on Friday, as most Asian markets declined following the weak cues overnight from Wall Street amid renewed uncertainty about the near-term outlook for interest rates in the U.S. and Europe.

The European Central Bank made no immediate changes to interest rates on Thursday and noted that the risk of recession was relatively low, disappointing investors who had hoped for a more dovish stance.

U.S. weekly jobless claims fell to a three-month low last week and durable goods orders rebounded notably, supporting the view the Fed won't be aggressive in its easing measures.

The Federal Reserve meets next week, with investors expecting a rate cut of 25 basis points.

Weak earnings reports and disappointing forecasts from U.S. companies also dented sentiment.

Investors focus on upcoming U.S.-China trade talks amid increasing anxiety about slower global economic growth.

The aussie declined to more than a 2-week low of 0.6939 against the greenback, from a high of 0.6955 hit at 8:20 pm ET. If the aussie slides further, it may find support around the 0.68 level.

The aussie fell to 75.38 against the yen, after rising to a session's high of 75.59 at 8:20 pm ET. The next possible support for the aussie is seen around the 73.5 level.

Reversing from its early highs of 0.9153 against the loonie and 1.6025 against the euro, the aussie pulled back to 0.9135 and 1.6061, respectively. The currency is likely to find support around 0.89 against the loonie and 1.63 against the euro.

The Australian currency depreciated to 1.0425 against the kiwi, off its early 2-day high of 1.0440. The aussie is poised to find support around the 1.025 level.

Looking ahead, U.S. GDP data for the second quarter is due in the New York session.