Australian, NZ Dollars Fall As Inflation, Tightening Concerns Weigh
March 13 2022 - 10:32PM
RTTF2
The Australian and NZ dollars weakened against their major
counterparts in the Asian session on Monday, as inflationary
concerns and the prospects of monetary policy tightening by the
Federal Reserve deteriorated risk sentiment.
U.S. treasury yields rose ahead of the Fed decision due on
Wednesday.
The central bank is expected to deliver a quarter-point rate
hike to combat soaring inflation.
China imposed a lockdown in Shenzhen due to a rise in COVID-19
cases.
The country's new daily cases doubled to nearly 3,400 over the
weekend, driven by the highly transmissible Omicron variant.
High-level talks between U.S. and Chinese officials are
scheduled in Rome, which will focus on bilateral relations and
international and regional issues.
The aussie declined to near 2-week lows of 0.7238 against the
greenback and 0.9253 against the loonie, reversing from its early
highs of 0.7299 and 0.9294, respectively. The aussie may find
support around 0.70 against the greenback and 0.90 against the
loonie.
Reversing from its early highs of 85.82 against the yen and
1.0717 against the kiwi, the aussie dropped to a 4-day low of 85.25
and a 5-day low 1.0676, respectively. The aussie is poised to
challenge support around 81.00 against the yen and 1.045 against
the kiwi.
The aussie weakened to 1.5073 against the euro, from a high of
1.4957 hit at 6 pm ET. The aussie is seen finding support around
the 1.53 mark.
The kiwi depreciated to 0.6778 against the greenback, its lowest
level since March 4. On the downside, 0.66 is possibly seen as the
next support level for the currency.
The kiwi retreated from a prior high of 1.6022 against the euro,
reaching as low as 1.6099. The kiwi is likely to challenge support
around the 1.62 mark.
The kiwi was trading at 79.82 against the yen, slightly down
from a high of 80.10 seen earlier in the session. If the kiwi falls
further, 76.00 is likely seen as its next support level.
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