The Australian dollar slipped against its major counterparts in the Asian session on Thursday, as Asian markets followed Wall Street lower after a jump in U.S. consumer prices triggered concerns over whether the Federal Reserve would move to a tighter monetary policy sooner than expected.
Expectations for a Fed rate hike has been pushed forward, with investors pricing in an 80 percent chance of an increase as early as December next year.
Yields on 10-year Treasuries steadied at 1.68 percent, after having climbed 7 basis points overnight in the biggest daily rise in two months.
But Fed officials played down risk of inflation, with vice chair Richard Clarida saying the spike was largely driven by transitory forces.
Oil prices retreated as Colonial Pipeline has restarted its operations, after a cyberattack that forced it to shut down last Friday.
The aussie dropped to 0.7706 against the greenback, setting a 1-week low. If the aussie falls further, it is likely to test support around the 0.75 region.
The aussie declined to a 1-week low of 84.56 against the yen from Wednesday’s close of 84.65. The aussie is seen facing support around the 81.5 mark.
The aussie weakened to more than a 6-month low of 0.9351 against the loonie, while touching 1.5666 against the euro, its lowest level in a month. The next possible support for the aussie is seen around 0.92 against the loonie and 1.61 against the euro.
The aussie hit a session’s low of 1.0770 against the kiwi, down from Wednesday’s close of 1.0785. The aussie may locate support around the 1.06 level.
Data from Statistics New Zealand showed that New Zealand food prices climbed an unadjusted 1.1 percent on month in April; seasonally adjusted, food prices rose 0.7 percent.
On a yearly basis, food prices gained 0.7 percent.
Looking ahead, the U.S. weekly jobless claims for the week ended May 8 and PPI for April will be featured in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com