Australian Dollar Slides After Weak Trade Data

The Australian dollar dropped against its major counterparts in the Asian session on Wednesday, after a data showed that Australia's trade surplus decreased in July.

Data from the Australian Bureau of Statistics showed that the trade surplus fell to a seasonally adjusted A$1.55 billion in July from A$1.94 billion in June. Nonetheless, this was above the expected level of A$1.45 billion.

Data showed that exports dropped 1 percent from the previous month, while imports remained broadly unchanged in July.

Asian stock markets were mixed amid continuing worries over global trade tensions and emerging market woes.

News that U.S. President Donald Trump intends to impose tariffs on another $200 billion worth of Chinese imports as soon as a public comment period ends on Thursday also weighed on investor sentiment.

Meanwhile, Canada's Foreign Minister Chrystia Freeland said that the U.S. and Canada are making "good progress" on the revision of the North American trade pact but talks will continue to resolve remaining issues.

The aussie declined to 0.7166 against the greenback, from a high of 0.7211 hit at 10:45 pm ET. The aussie is likely to challenge support around the 0.70 level.

The aussie reversed from an early high of 80.28 against the yen, edging down to 79.80. If the aussie falls further, it may find support around the 78.00 level.

Having advanced to 0.9494 against the loonie at 10:45 pm ET, the aussie reversed direction and weakened to 0.9450. On the downside, 0.93 is possibly seen as the next support level for the aussie.

The aussie fell to a 2-1/2-year low of 1.6221 against the euro and held steady thereafter. The aussie is poised to find support around the 1.65 level.

The aussie dropped to a 3-day low of 1.0883 against the kiwi early in the session and held steady thereafter. At yesterday's close, the pair was worth 1.0908.

Looking ahead, at 8:15 am ET, U.S. ADP private payrolls for August are due.

In the New York session, Canada building permits for July, U.S. weekly jobless claims for the week ended September 1, factory orders for July and ISM non-manufacturing composite index for August are set for release.