Investing.com - The Australian dollar tumbled against its U.S. rival during Thursday’s Asian session after U.S. auto giant Ford announced a jobs reduction plan in Australia.
In Asian trading Thursday, AUD/USD slid 0.55% to 0.9649. The pair violated support at 0.9741, the low of May 20, and will find resistance at 0.9914, the high of May 16.
Earlier Thursday, Ford Australia said it will shutter its Broadmeadows and Geelong plants in October 2016, leading to the loss of 1,200 jobs in the process.
Although the Aussie has been sliding recently, it is still strong against the greenback by historical standards and that strength may have prompted the glum news from Ford. The company said its manufacturing costs in Australia are double that of its costs in Europe and nearly quadruple its costs in Asia.
Australian Treasurer Wayne Swan said the government will do all it can to help the affected workers. Michigan-based Ford is the second-largest U.S. car company behind General Motors.
The Ford news comes a day after Westpac Banking Corporation said consumer sentiment in Australia fell 7.0% in May, after a 5.10% decline the previous month
Traders will now turn their attention to HSBC’s flash reading on Chinese manufacturing activity. China, the world’s second-largest economy behind the U.S., is Australia’s largest trading partner.
Elsewhere, AUD/JPY fell 0.27% to 99.80 while EUR/AUD gained 0.24% to 1.3292. GBP/AUD advanced rose 0.26% to 1.5559 while AUD/NZD inched down 0.08% to 1.2002.
In Asian trading Thursday, AUD/USD slid 0.55% to 0.9649. The pair violated support at 0.9741, the low of May 20, and will find resistance at 0.9914, the high of May 16.
Earlier Thursday, Ford Australia said it will shutter its Broadmeadows and Geelong plants in October 2016, leading to the loss of 1,200 jobs in the process.
Although the Aussie has been sliding recently, it is still strong against the greenback by historical standards and that strength may have prompted the glum news from Ford. The company said its manufacturing costs in Australia are double that of its costs in Europe and nearly quadruple its costs in Asia.
Australian Treasurer Wayne Swan said the government will do all it can to help the affected workers. Michigan-based Ford is the second-largest U.S. car company behind General Motors.
The Ford news comes a day after Westpac Banking Corporation said consumer sentiment in Australia fell 7.0% in May, after a 5.10% decline the previous month
Traders will now turn their attention to HSBC’s flash reading on Chinese manufacturing activity. China, the world’s second-largest economy behind the U.S., is Australia’s largest trading partner.
Elsewhere, AUD/JPY fell 0.27% to 99.80 while EUR/AUD gained 0.24% to 1.3292. GBP/AUD advanced rose 0.26% to 1.5559 while AUD/NZD inched down 0.08% to 1.2002.