2010.11.2304:25:00UTC+00Australian Dollar Slips On Weak Equities

The Australian dollar edged down against other major currencies on Tuesday as a fall in Asian and European stocks reduced demand for higher-yielding currencies. The aussie dropped to a 4-day low against the yen and a 6-day low against the U.S. and Canadian dollars.

Meanwhile, the aussie eased from early Asian session's 8-day high against the euro.

Asian and European stocks dropped today on fears that a bailout package to Ireland might not prevent the debt crisis in the euro zone from spreading.

A call by Ireland's Green Party for new general elections in January added political uncertainty to the mix, also weighing on investors' sentiment.

Investors also reacted to news that there was a fire exchange between North and South Korea.

North Korean artillery fired dozens of shells onto a South Korean island near their disputed sea border, setting fire to buildings and prompting a return of fire by the South, reports said.

At 3:15 am ET Tuesday, the Australian dollar fell to a 4-day low of 81.84 against the yen and a 6-day low of 0.9777 against the U.S. currency, compared to Monday's close of 82.41 and 0.9890, respectively. If the aussie declines further, it may likely target 0.973 against the greenback and 81.5 against the yen. As of now, the aussie is worth 0.9790 against the greenback and 81.95 against the yen.

The Australian dollar slipped to 1.3870 against the euro by about 3:15 am ET Monday from an early Asian session's 8-day high of 1.3753. The euro-aussie pair that closed yesterday's trading at 1.3788 is now worth 1.3860. On the downside, 1.394 is seen as the next target level for the Australian currency.

The German economy expanded a seasonally adjusted 0.7% sequentially in the third quarter following the 2.3% growth in the second quarter, a second release from the Federal Statistical Office showed today. GDP rose 3.9% year-on-year during the period from July to September.

The Australian dollar declined to a 6-day low of 0.9985 against the Canadian dollar at 1:45 am ET Monday. Since then, the aussie-loonie pair has been moving sideways and is currently worth 1.0005. The next downside target level for the aussie is seen at 0.992.

Looking ahead, Canada's CPI for October and retail sales for September are due at 7:00 am and 8:30 am ET, respectively.

The U.S. preliminary estimate of third quarter GDP and existing home sales for October are slated for release in the New York session.

The Federal Reserve is scheduled to release the minutes of its November 3rd Federal Open Market Committee meeting at 2 pm ET.

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