Australian Dollar Slips On Risk Aversion
The Australian dollar fell against the currencies of U.S., Japan and Canada in early Asian deals on Monday amid a decline in equities.
Asian markets are trading lower tracking cues from Wall Street where stocks tumbled on Friday amid lingering worries about the global economy. Also, investors' sentiment weakened on concerns over rising borrowing costs in Spain.
Spanish banks stepped up their borrowings from the European Central Bank in March after it announced the second long-term refinancing operation in a bid to ease credit crunch. Bank of Spain data showed Friday that Spanish banks' net borrowing from ECB climbed to EUR 227.6 billion in March from EUR 152.4 billion in February.
The aussie fell to 4-day lows of 83.45 against the yen and 1.0316 against the greenback with 83.00 and 1.025 seen as the next downside target levels, respectively. At last week's close, the aussie was worth 83.93 against the yen and 1.0375 against the greenback.
Against the Canadian dollar, the aussie hit a 5-day low of 1.0316 from Friday's close of 1.0355. The next downside target level for the aussie is seen at 1.025.
In the European session, Swiss producer and import prices for March and Eurozone trade data for February are slated for release.
The U.S. advance retail sales for March, empire manufacturing for April, business inventories for February and NAHB housing market index for April are due in the New York session.
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