Australian, NZ Dollars Fall On Risk Aversion
The Australian and NZ dollars dropped against their major
counterparts in the Asian session on Tuesday, as Asian stocks
followed Wall Street lower amid concerns about higher
Investors fear that a surge in inflation could prompt the Fed to
tighten policy sooner than expected.
The Labor Department will release its latest U.S. CPI data on
Wednesday, which is expected to show a rise of 3.6 percent over the
year in April.
U.S. inflation expectations soared to the highest in a decade as
the economy recovers from the pandemic and on the Fed's
Data from Statistics New Zealand showed that New Zealand retail
credit card spending climbed a seasonally adjusted 4.0 percent on
month in April - after rising 0.8 percent in March.
Spending in the core retail industries climbed 4.1 percent on
The aussie weakened to 4-day lows of 0.7822 against the
greenback, 1.5518 against the euro and 0.9467 against the loonie,
off its early highs of 0.7845, 1.5471 and 0.9487, respectively. The
aussie is poised to challenge support around 0.75 against the
greenback, 1.57 against the euro and 0.93 against the loonie.
The aussie hit a session's low of 85.14 against the yen, after
rising to 85.42 at 10:35 pm ET. The aussie is seen finding support
around the 82.00 mark.
The aussie retreated to 1.0772 against the kiwi, from a high of
1.0792 hit at 9:15 pm ET. The aussie may locate support around the
The NZ currency slipped to 4-day lows of 0.7252 against the
greenback, 78.97 against the yen and 1.6724 against the euro,
reversing from its early highs of 0.7277, 79.23 and 1.6676,
respectively. The next possible support for the kiwi is seen around
0.70 against the greenback, 76.5 against the yen and 1.69 against
Looking ahead, German ZEW economic sentiment for May is due out
in the European session.