Australian, NZ Dollars Lower Following Hawkish Fed Minutes
April 06 2022 - 11:03PM
RTTF2
The Australian and NZ dollars fell against their major rivals in
the Asian session on Thursday, as the U.S. Federal Reserve's
minutes from the March meeting showed that policymakers are
preparing to raise rates aggressively in upcoming policy meetings
and plans to reduce the size of the balance sheet by $95 billion a
month after the meeting in May.
The minutes showed that most policymakers supported rate hikes
of 50 basis points at upcoming meetings, if inflation pressures
remained elevated or intensified.
Fed policymakers broadly agreed to reduce its securities
holdings at a pace of $95 billion per month, possibly from next
month.
The Fed noted that it planned to deliver a half-point increase
at the March meeting, but it was dropped due to the uncertainty
related to Russia's invasion of Ukraine.
The U.S. imposed more sanctions against Russia targeting major
state-owned enterprises, government officials and their family
members and also banned new investments in the country.
The aussie declined to a 6-day low of 0.7474 against the
greenback and a 2-day low of 92.41 against the yen, following its
prior highs of 0.7519 and 93.18, respectively. The aussie may find
support around 0.72 against the greenback and 89.00 against the
yen, should it drops again.
The aussie touched 3-day lows of 1.4602 against the euro and
0.9390 against the loonie, down from its previous highs of 1.4488
and 0.9440, respectively. The next likely support for the aussie is
seen around 1.49 against the euro and 0.92 against the loonie.
The aussie pulled back from a prior high of 1.0866 against the
kiwi, falling to a 3-day low of 1.0841. On the downside, 1.06 is
possibly seen as its next support level.
The kiwi slipped to a 3-day low of 1.5839 against the euro and a
2-day low of 85.19 against the yen, after gaining to 1.5728 and
85.77, respectively earlier in the session. The kiwi is likely to
find support around 1.60 against the euro and 82.00 against the
yen.
The NZ currency was down against the greenback, at a 9-day low
of 0.6889. Next key support for the currency is seen around the
0.66 level.
Looking ahead, Eurozone retail sales for February are due in the
European session.
At 7:30 am ET, the European Central Bank publishes the account
of the monetary policy meeting of the Governing Council held on
March 9 and 10.
U.S. weekly jobless claims for the week ended April 2 and
consumer credit for February will be featured in the New York
session.
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