Investing.com - The Australian dollar traded lower against its U.S. counterpart during Friday’s Asian session on news Australia’s budget deficit for the current fiscal year is expected to be far wider than previously forecast.
In Asian trading Friday, AUD/USD fell 0.08% to 0.8920, falling below support at 0.8928, Wednesday's low and a three-year low. Next resistance is 0.9072, Wednesday's high.
Due to an AUD33 billion collapse in tax revenue, Australia will likely post a budget deficit of AUD30 billion for the current fiscal year, well above the AUD15 billion forecast just eight weeks ago. The deficit for the 2014-15 fiscal year is expected to be AUD24 billion, more than double the initial estimate of AUD10.9 billion.
For the 2015-16 fiscal, the deficit will be AUD5 billion before disappearing the following year. Other data showed the unemployment rate in the world’s 12th-largest economy is expected to be 6.25% this year, an increase of 70,000 jobless compared with prior estimates.
Elsewhere, the Australian Bureau of Statistics said that producer price inflation rose just 0.1% in the second quarter compared with a 0.3% increase in the first quarter. Analysts had expected PPI to rise 0.6% last quarter.
Earlier this week, industry data earlier showed that new home sales in Australia rose 3.4% in June, after a 1.6% increase the previous month.
Meanwhile, AUD/JPY dropped 0.27% to 88.64 while AUD/NZD fell 0.25% to 1.1281.
In Asian trading Friday, AUD/USD fell 0.08% to 0.8920, falling below support at 0.8928, Wednesday's low and a three-year low. Next resistance is 0.9072, Wednesday's high.
Due to an AUD33 billion collapse in tax revenue, Australia will likely post a budget deficit of AUD30 billion for the current fiscal year, well above the AUD15 billion forecast just eight weeks ago. The deficit for the 2014-15 fiscal year is expected to be AUD24 billion, more than double the initial estimate of AUD10.9 billion.
For the 2015-16 fiscal, the deficit will be AUD5 billion before disappearing the following year. Other data showed the unemployment rate in the world’s 12th-largest economy is expected to be 6.25% this year, an increase of 70,000 jobless compared with prior estimates.
Elsewhere, the Australian Bureau of Statistics said that producer price inflation rose just 0.1% in the second quarter compared with a 0.3% increase in the first quarter. Analysts had expected PPI to rise 0.6% last quarter.
Earlier this week, industry data earlier showed that new home sales in Australia rose 3.4% in June, after a 1.6% increase the previous month.
Meanwhile, AUD/JPY dropped 0.27% to 88.64 while AUD/NZD fell 0.25% to 1.1281.