Australian, NZ Dollars Lower On Recession Fears
April 15 2020 - 11:03PM
RTTF2
The Australian and NZ dollars drifted lower against their major
counterparts in the Asian session on Thursday, as weak U.S.
economic data and corporate earnings results pointed to the
damaging economic impact of the coronavirus pandemic, dampening
sentiment.
Globally, the number of coronavirus cases has topped more than 2
million, while more than 133,000 deaths related to the pandemic
have also been reported.
The United States reported nearly 2,600 additional deaths from
the new coronavirus in 24 hours, a new record and the heaviest
daily toll of any country, according to Johns Hopkins
University.
Data from the Australian Bureau of Statistics showed that the
unemployment rate in Australia came in at a seasonally adjusted 5.2
percent in March.
That was up from 5.1 percent in February, but it beat
expectations for 5.4 percent.
The Australian economy added 5,900 jobs last month after
collecting 26,700 jobs in February - but that was far better than
forecasts that suggested a loss of 30,000 jobs due to the impact of
the Covid-19 virus.
The aussie fell to 1-week lows of 0.6264 against the greenback
and 1.7351 against the euro, from its early highs of 0.6322 and
1.7249, respectively. The aussie is seen finding support around
0.60 against the greenback and 1.75 against the euro.
Reversing from its previous highs of 68.07 against the yen and
0.8920 against the loonie, the aussie depreciated to 67.61 and
0.8852, respectively. The aussie may challenge support around 65.00
against the yen and 0.86 against the loonie.
The kiwi weakened to 8-days low of 1.8296 against the euro and
0.5942 against the greenback, off its early highs of 1.8172 and
0.5999, respectively. The kiwi is poised to find support around
1.86 against the euro and 0.58 against the greenback.
The kiwi reversed from an early high of 64.59 against the yen,
dropping to 64.09. If the kiwi slides further, it may target
support around the 60.00 level.
The kiwi slipped to near a 5-month low of 1.0574 against the
aussie and held steady thereafter. At yesterday's close, the pair
was worth 1.0534.
Looking ahead, Eurozone industrial production for February is
due in the European session.
U.S. weekly jobless claims for the week ended April 11, building
permits and housing starts for March will be featured in the New
York session.
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