Australian, NZ Dollars Drop On Risk Aversion
September 23 2020 - 10:17PM
RTTF2
The Australian and NZ dollars fell against their major
counterparts in the Asian session on Thursday, as rising
coronavirus cases heightened concerns about the the global economic
recovery.
Asian stocks followed Wall Street lower as indications of an
economic slowdown in Europe and the U.S. renewed fears about the
downturn caused by the pandemic.
Concerns over U.S. fiscal stimulus also weighed on markets.
Federal Reserve Chair Jerome Powell noted that despite progress
in rebounding from the coronavirus economic downturn, "there is a
long way to go."
Several Fed officials on Wednesday called for more fiscal
stimulus to boost the economy.
The aussie weakened to more than a 2-month low of 0.7031 versus
the greenback and a 2-1/2-month low of 74.08 against the yen, off
its early highs of 0.7081 and 74.63, respectively. The next
possible support for the aussie is seen around 0.68 versus the
greenback and 70.00 against the yen.
Reversing from its early highs of 1.6457 versus the euro and
0.9472 against the loonie, the aussie dropped to a 3-1/2-month low
of 1.6576 and more than a 4-week low of 0.9428, respectively. The
aussie is likely to find support around 1.70 versus the euro and
0.92 against the loonie.
The aussie pared gains to 1.0774 against the kiwi, from a high
of 1.0806 seen at 7:10 pm ET. On the downside, 1.05 is possibly
seen as its next support level.
The kiwi depreciated to more than a 4-week low of 0.6524 versus
the greenback, near 3-month low of 68.75 against the yen and a
4-week low of 1.7865 versus the euro, from its early highs of
0.6557, 69.10 and 1.7771, respectively. The kiwi is poised to find
support around 0.62 versus the greenback, 65 against the yen and
1.81 versus the euro.
Looking ahead, the Swiss National Bank's monetary policy
announcement will be out at 3:30 am ET. Economists widely expect
the central bank to maintain policy rate at -0.75 percent.
German Ifo business sentiment index for September is due in the
European session.
U.S. weekly jobless claims for the week ended September 19 and
new home sales for August are scheduled for release in the New York
session.
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