Commodity Currencies Fall As Asian Stock Markets Traded Lower

Commodity currencies such as the Australian, the New Zealand, and the Canadian dollar weakened against their major counterparts in the Asian session on Tuesday, as Asian stock markets traded lower with some of the markets reversing early gains as investors digested the release of China's trade data for the month of July, with the export and import figures falling short of analysts' expectations.

Data from the General Administration of Customs showed that China's trade surplus increased in July despite a slowdown in exports growth. Exports increased 7.2 percent year-on-year in July. Imports grew 11 percent but weaker than June's 17.2 percent expansion. Economists had forecast a faster growth of 18 percent.

Consequently, the trade surplus widened to $46.7 billion in July from $42.7 billion in June. This was also above the expected level of $45 billion.

Meanwhile, the crude oil delivery for September is down by 0.09 percent or $49.30 per barrel. The crude oil futures fell after a recovery in output at Libya's largest oil field and as oil exporters met to discuss a deal to limit output.

In the Asian trading, the Australian dollar fell to 1.4922 against the euro, 0.7913 against the U.S. dollar and 87.52 against the yen, from early highs of 1.4888, 0.7939 and 87.84, respectively. If the aussie extends its downtrend, it is likely to find support around 1.50 against the euro, 0.77 against the greenback and 86.00 against the yen.

Against the New Zealand and the Canadian dollars, the aussie dropped to 1.0759 and 1.0025 from an early near 3-week highs of 1.0779 and 1.0049, respectively. The aussie may test support near 1.05 against the kiwi and 0.99 against the loonie.

The NZ dollar fell to a 2-1/2-month low of 1.6065 against the euro and nearly a 1-1/2-month low of 81.31 against the yen, from yesterday's closing quotes of 1.6019 and 81.52, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.63 against the euro and 80.00 against the yen.

Against the U.S. dollar, the kiwi dropped to 0.7351 from yesterday's closing value of 0.7363. The kiwi may find support near the 0.72 region.

The Canadian dollar fell to 1.2672 against the U.S. dollar and 87.27 against the yen, from early highs of 1.2653 and 87.46, respectively. If the loonie extends its downtrend, it is likely to find support around 1.30 against the greenback and 86.00 against the yen.

Against the euro, the loonie dropped to 1.4966 from yesterday's closing value of 1.4954. The loonie is likely to find support near the 1.51 region.

Looking ahead, U.S. NFIB small business index and Canada housing starts data, both for July, are due to be released in the New York session.