Australian, NZ Dollars Drift Lower Amid Rising Risk Aversion
June 11 2019 - 10:33PM
RTTF2
The Australian and New Zealand dollars slipped against their
major counterparts in the Asian session on Wednesday amid rising
risk aversion, as most Asian shares declined with investors
awaiting further developments regarding the ongoing trade dispute
between the U.S. and China.
Investors digested comments from U.S. President Donald Trump
that he was holding up a trade deal with China and will not proceed
with new trade talks until Beijing returns to terms that were
previously agreed upon.
Following Trump's tariff threat, China's foreign ministry
reportedly said it would respond firmly if the U.S. insisted on
escalating its standoff with China.
In economic news, Australia's consumer confidence deteriorated
in June as deepening concerns about the economy outweighed the
initial boost from lower interest rates, survey data from Westpac
showed.
The Westpac-Melbourne Institute Index of Consumer Sentiment fell
to 100.7 in June from 101.3 in May.
The aussie weakened to a 9-day low of 0.6566 against the
greenback, 8-day low of 75.24 against the yen and more than a
5-month low of 1.6327 against the euro, reversing from its early
highs of 0.6964, 75.59 and 1.6264, respectively. The aussie is seen
finding support around 0.67 against the greenback, 73.5 against the
yen and 1.65 against the euro.
Reversing from an early high of 0.9250 and a weekly high of
1.0581, the aussie edged lower to 0.9229 against the loonie and
1.0561 against the kiwi, respectively. The currency is likely to
target support around 0.91 against the loonie and 1.04 against the
kiwi.
The kiwi slipped to a 9-day low of 0.6566 against the greenback
and an 8-day low of 71.20 against the yen, off its early highs of
0.6587 and 71.49, respectively. If the kiwi falls further, 0.645
and 70.00 are likely seen as its next possible support levels
against the greenback and the yen, respectively.
The kiwi declined to 1.7261 against the euro, its lowest since
October 29, 2018. This follows a high of 1.7197 hit at 6:45 pm ET.
On the downside, 1.73 is possibly seen as the next support level
for the kiwi.
Looking ahead, at 4:15 am ET, European Central Bank President
Mario Draghi will deliver a speech at the ECB conference on
central, eastern, and south-eastern European countries, in
Frankfurt.
The U.S. consumer prices and monthly budget statement for May
are due in the New York session.
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