Australian Dollar weakens as global energy supply disrupts further

The Australian Dollar trades lower against its major peers amid surging oil prices.
Middle East energy supply risks have prompted oil prices.
Investors await the Australian employment data for June and the flash US private sector PMI data for July.

Sagar Dua FXStreet

The Australian Dollar (AUD) underperforms its major currency peers, trading marginally down at around 0.7000 against the US Dollar (USD) during the European trading session on Wednesday. The antipodean faces selling pressure as oil prices have rallied further due to intensifying global energy supply risks.

Australian Dollar Price Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the Japanese Yen.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.09%	0.02%	-0.11%	-0.11%	0.03%	0.12%	-0.10%
EUR	0.09%		0.10%	0.00%	-0.02%	0.11%	0.22%	-0.01%
GBP	-0.02%	-0.10%		-0.11%	-0.12%	-0.00%	0.11%	-0.11%
JPY	0.11%	0.00%	0.11%		0.00%	0.14%	0.23%	0.01%
CAD	0.11%	0.02%	0.12%	-0.00%		0.14%	0.28%	0.00%
AUD	-0.03%	-0.11%	0.00%	-0.14%	-0.14%		0.11%	-0.14%
NZD	-0.12%	-0.22%	-0.11%	-0.23%	-0.28%	-0.11%		-0.24%
CHF	0.10%	0.01%	0.11%	-0.01%	-0.01%	0.14%	0.24%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

The global energy supply mechanism has been disrupted further as Yemen's Iran-aligned Houthis announced a 'maritime embargo' on Saudi Arabia in retaliation for a Saudi blockade of ports and airports in Houthi-controlled north-western Yemen, BBC News reported, in which the Bab el-Mandeb strait has been closed.

According to a Reuters report, around 7% of global energy is transited through the Bab el-Mandeb strait, the southern gateway of the Red Sea.

On the domestic front, investors await Australian labor market data for June, which will be released on Thursday. The employment report is expected to show that the economy created 15K fresh jobs, significantly lower than 40.3K in May. The Unemployment Rate is seen remaining steady at 4.4%.

Investors will closely track the Australian labor market data to get fresh cues regarding the Reserve Bank of Australia’s (RBA) monetary policy outlook.

Meanwhile, the US Dollar (USD) trades marginally lower, with investors shifting focus to the flash United States (US) S&P Global PMI data for July, which will be released on Friday.

Economic Indicator

Employment Change s.a.

The Employment Change released by the Australian Bureau of Statistics is a measure of the change in the number of employed people in Australia. The statistic is adjusted to remove the influence of seasonal trends. Generally speaking, a rise in Employment Change has positive implications for consumer spending, stimulates economic growth, and is bullish for the Australian Dollar (AUD). A low reading, on the other hand, is seen as bearish.

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