Australian, NZ Dollars Drop On Global Growth Concerns
September 07 2021 - 10:54PM
RTTF2
The Australian and NZ dollars fell against their major
counterparts in the Asian session on Wednesday, as rising cases of
Delta variant of COVID-19 clouded the global economic outlook.
Australia's New South Wales reported 1,480 new coronavirus cases
on Tuesday, up from 1,220 cases a day earlier.
The likelihood of a slowing reopening of the economy along with
reduced policy support from the Federal Reserve and the European
Central Bank added to worries.
In an interview with the Financial Times, St. Louis Federal
Reserve Bank President James Bullard said that the central bank
should proceed with a plan to wind down stimulus measures this year
and end by the first half of next year.
Bullard said that there is enough demand for workers and more
job openings, which could pave the way for a strong labor market
next year.
The aussie weakened to 6-day lows of 0.7367 against the
greenback, 81.21 against the yen and 1.6075 against the euro, down
from its early highs of 0.7404, 81.65 and 1.6005, respectively. The
aussie is likely to find support around 0.72 against the greenback,
78.00 against the yen and 1.62 against the euro.
The aussie reversed from an early high of 1.0410 against the
kiwi, declining to 1.0386. On the downside, 1.01 is possibly seen
as its next support level.
The aussie retreated to 0.9328 against the loonie, from a high
of 0.9350 seen at 9:45 pm ET. If the aussie drops further, 0.92 is
seen as its next support level.
The kiwi slipped to 78.15 against the yen, 1.6702 against the
euro and a session's low of 0.7087 against the greenback, after
rising to 78.45, 1.6654 and 0.7113, in early deals. The currency is
poised to find support around 76.00 against the yen, 1.70 against
the euro and 0.68 against the greenback.
Looking ahead, the Bank of Canada will announce its interest
rate decision at 10:00 am ET. The BoC is widely expected to keep
its policy rate steady at 0.25 percent.
Canada Ivey PMI for August and U.S. consumer credit for July
will be featured in the New York session.
Euro vs AUD (FX:EURAUD)
Forex Chart
From Aug 2024 to Sep 2024
Euro vs AUD (FX:EURAUD)
Forex Chart
From Sep 2023 to Sep 2024