Australian, NZ Dollars Weaken Amid Rising Risk Aversion
The Australian and NZ dollars fell against their major
counterparts in the Asian session on Wednesday, as risk sentiment
dampened on fears about a recession in the wake of aggressive rate
hikes by the Federal Reserve to tame inflation.
Chair Jerome Powell will testify on the semi-annual monetary
policy report in the Senate later today.
Investors will closely watch Powell's comments for clues on the
aggressiveness of the tightening cycle in the light of high
Markets are assigning a 90 percent probability of a 75 basis
point rate hike next month, according to the CME FedWatch tool.
Oil prices fell as U.S. President Joe Biden is set to call on
Congress to temporarily suspend the federal gasoline tax during the
The aussie weakened to a 5-day low of 0.6904 against the
greenback and a 1-week low of 0.8953 against the loonie, reversing
from its early highs of 0.6972 and 0.9008, respectively. The aussie
is seen finding support around 0.67 against the greenback and 0.88
against the loonie.
The aussie pulled back from its prior highs of 1.5099 versus the
euro and 95.29 against the yen, dropping to 1.5200 and 93.91,
respectively. If the aussie falls further, it is likely to test
support around 1.55 versus the euro and 90.00 against the yen.
The kiwi touched a 1-week low of 1.6789 against the euro and a
6-day low of 0.6253 against the greenback, down from its early
highs of 1.6619 and 0.6335, respectively. The kiwi is likely to
challenge support around 1.69 against the euro and 0.61 against the
The kiwi depreciated to a 5-day low of 1.1051 against the aussie
and a 2-day low of 85.08 against the yen, after rising to 1.0995
and near a 2-week high of 86.57, respectively earlier in the
session. The kiwi may locate support around 1.12 against the aussie
and 83.00 against the yen.
Looking ahead, Canada inflation data for May will be featured in
the New York session.
At 9:30 am ET, Federal Reserve Chair Jerome Powell will testify
on the semi-annual monetary policy report before the Senate Banking
Committee in Washington DC.
Eurozone flash consumer sentiment index for June will be
released at 10:00 am ET.
AUD vs CAD (FX:AUDCAD)
From Jul 2022 to Aug 2022
AUD vs CAD (FX:AUDCAD)
From Aug 2021 to Aug 2022