Commodity currencies such as the Australian, the New Zealand and the Canadian dollars weakened against their major counterparts in the Asian session on Wednesday amid rising risk aversion, as the crude oil prices fell after a deal to curb global supplies failed to materialize. Crude oil prices slipped a further 1 percent in Asian trades.
Crude oil for April delivery are currently down $0.73 to $31.14 a barrel.
In other economic news, data from the Australian Bureau of Statistics showed that wage costs in Australia were up a seasonally adjusted 0.5 percent on quarter in the fourth quarter of 2015. That missed forecasts for an increase of 0.6 percent, which would have been unchanged from the third quarter.
Separate data from the same agency showed that the total value of construction work done in Australia was down a seasonally adjusted 3.6 percent on quarter in the fourth quarter of 2015, coming in at A$48.413 billion. That missed forecasts for a decline of 2.0 percent following the 1.8 percent contraction in the three months prior.
Tuesday, the Australian, the New Zealand and the Canadian dollars showed mixed trading against their major counterparts. While the Australian dollar rose against the U.S. dollar and euro, it held steady against the yen.
The NZ dollar held steady against the U.S. dollar and the euro, while it fell against the yen. The Canadian dollar fell against the U.S. dollar and the yen, while it held steady against the euro.
In the Asian trading, the Australian dollar fell to a 5-day low of 80.09 against the yen, from yesterday's closing value of 80.73. The aussie may test support near the 77.00 region.
Against the U.S. dollar and the euro, the aussie dropped to 2-day lows of 0.7166 and 1.5383 from yesterday's closing quotes of 0.7202 and 1.5289, respectively. If the aussie extends its downtrend, it is likely to find support around 0.70 against the greenback and 1.58 against the euro.
The aussie edged down to 0.9900 against the Canadian dollar, from yesterday's closing value of 0.9930. On the downside, 0.97 is seen as the next support level for the aussie.
The NZ dollar fell to more than a 3-week low of 1.0874 against the Australian dollar and nearly a 2-week low of 73.84 against the yen, from yesterday's closing quotes of 1.0836 and 74.42, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.09 against the aussie and 73.00 against the yen.
Against the euro and the U.S. dollar, the kiwi dropped to a 2-day low of 1.6686 and a 5-day low of 0.6606 from yesterday's closing quotes of 1.6576 and 0.6637, respectively. The kiwi may test support near 1.70 against the euro and 0.65 against the greenback.
The Canadian dollar fell to nearly a 2-week low of 80.84 against the yen, from yesterday's closing value of 81.25. The loonie is likely to find support around the 78.00 area.
Against the U.S. dollar and the euro, the loonie dropped to 1.3815 and 1.5231 from yesterday's closing quotes of 1.3792 and 1.5193, respectively. If the loonie extends its downtrend, it is likely to find support around 1.41 against the greenback and 1.57 against the euro.
Meanwhile, the safe-haven yen rose against its major rivals amid rising risk aversion.
Data from the Bank of Japan said that producer prices in Japan were up 0.2 percent on year in January. That missed forecasts for an increase of 0.3 percent and was down from 0.4 percent in December.
The yen rose to nearly a 3-year high of 123.04 against the euro and more than a 2-1/2-year high of 156.09 against the pound, from yesterday's closing quotes of 123.50 and 157.16, respectively. If the yen extends its uptrend, it is likely to find resistance around 121.00 against the euro and 154.00 against the pound.
Against the U.S. dollar, the yen advanced to nearly a 2-week high of 111.63 from yesterday's closing value of 112.09. The yen is likely to find resistance around the 110.00 region.
The yen edged up to 112.46 against the Swiss franc, from yesterday's closing value of 113.06. On the upside, 111.00 is seen as the next resistance level for the yen.
Looking ahead, Swiss UBS consumption indicator for January is due to be released in the pre-European session at 2:00 am ET.
U.K. BBA mortgage approvals for January is slated for release later in the day.
In the New York session, U.S. new home sales data for January, Markit's flash service PMI report for February and U.S. crude oil inventories data set to e announced.
German Bundesbank Chief Jens Weidmann holds a news conference in Frankfurt at 8:00 am ET. At the same time, Federal Reserve Bank of Richmond President Jeffrey Lacker speak on "Can Monetary Policy Affect Economic Growth?" before the "Leaders + Legends" lecture series sponsored by the Johns Hopkins Carey Business School, in Baltimore, U.S.
At 12:50 pm ET, Bank of Canada Deputy Governor Lawrence Schembri is expected to speak at the Guelph Chamber of Commerce, in Ontario.
Subsequently, at 1:10 pm ET, Bank of England Deputy Governor Jon Cunliffe will deliver a speech at London South Bank University.
Five minutes later, Dallas Federal Reserve Bank President Robert Kaplan is scheduled to speak at an engagement where he will likely comment on the outlook for the U.S. economy and monetary policy, in Dallas.
The material has been provided by InstaForex Company - www.instaforex.com