Commodity Currencies Slide As Asian Stock Markets Traded Lower

(RTTNews) - The Commodity currencies such as the Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the late Asian session on Tuesday, as Asian stock markets traded lower, giving up early gains due to jitters over China's economy and a significant escalation of geopolitical tensions after two crude oil tankers, the Saudi-flagged Amjad and Panama-flagged Blue Lagoon I, were attacked in the Red Sea by Yemen's Iran-backed Houthi rebels.

Meanwhile, intense diplomatic efforts are underway involving the United States, Egypt and Qatar to secure a ceasefire in Gaza.

Oil and gold prices dipped in Asian trading as the dollar extended its rebound ahead of the release of manufacturing and service PMI readings.

Investors cautiously await more U.S. economic data, including Friday's non-farm payrolls report for August to gauge the size of the Federal Reserve's rate cut later this month.

In the late Asian trading today, the Australian dollar fell to a 6-day low of 1.6427 against the euro and a 4-day low of 98.39 against the yen, from Friday's closing quotes of 1.6300 and 99.75, respectively. If the aussie extends its downtrend, it is likely to find support around 1.68 against the euro and 92.00 against the yen.

Against the U.S. and the Canadian dollars, the aussie slipped to nearly a 2-week low of 0.6730 and nearly a 3-week low of 0.9105 from last week's closing quotes of 0.6790 and 0.9160, respectively. On the downside, 0.65 against the greenback and 0.88 against the loonie are seen as the next support levels for the aussie.

The aussie edged down to 1.0875 against the NZ dollar, from Friday's closing value of 1.0892. The AUD/NZD pair may test support near the 1.07 region.

The NZ dollar fell to nearly a 2-week low of 0.6183 against the U.S. dollar, from Friday's closing value of 0.6230. The NZD/USD pair is likely to find its support level around the 0.59 region.

Against the euro and the yen, the kiwi slipped to a 6-day low of 1.7877 and a 5-day low of 90.28 from last week's closing quotes of 1.7759 and 91.52, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.85 against the euro and 85.00 against the yen.

The Canadian dollar fell to nearly a 2-week low of 1.3531 against the U.S. dollar, from Friday's closing value of 1.3491. The loonie is likely to find its support around the 1.36 region.

Against the euro and the yen, the loonie slid to a 5-day low of 1.4960 and a 4-day low of 107.80 from last week's closing quotes of 1.4936 and 108.85, respectively. If the loonie extends its downtrend, it is likely to find support around 1.51 against the euro and 104.00 against the yen.

Meanwhile, the safe-haven currency or the yen rose against its major counterparts in the Asian session amid risk aversion.

The yen rose to a 4-day high of 145.65 against the U.S. dollar, from an early 2-week low of 147.21. The yen may test resistance around the 144.00 region.

Against the Swiss franc, the euro and the pound, the yen advanced to 4-day highs of 170.77, 160.94 and 191.08 from early highs of 172.67, 162.80 and 193.37, respectively. If the yen extends its uptrend, it is likely to find resistance around 169.00 against the franc, 160.00 against the euro and 189.00 against the pound.

Looking ahead, U.S. and Canada S&P Global manufacturing PMI reports for August, U.S. Redbook report, ISM manufacturing PMI for August and U.S. construction spending for July are slated for release in the New York session.