Australian Dollar Extends Drop As Victoria Lockdown Continues
02 June 2021 - 05:46PM
RTTF2
The Australian dollar continued to be lower against its major
counterparts in the European session on Wednesday, after the state
of Victoria extended its lockdown by another week to contain the
spread of coronavirus infections.
Victoria's Covid-19 infections rose by 6, to a total of 60
cases, on Wednesday.
In a press conference, acting Premier James Merlino said that
people will be required to stay at home except for essential work.
Salons and retail shops will be permitted to re-open and religious
ceremonies were allowed by social distancing rules.
The news of lockdown offset the impact of upbeat GDP data for
the first quarter.
Data from the Australian Bureau of Statistics showed that
Australia's gross domestic product climbed a seasonally adjusted
1.8 percent on quarter in the first three months of 2021.
That beat expectations for an increase of 1.5 percent following
the 3.1 percent spike in the previous three months.
On a yearly basis, GDP was up 1.1 percent - again beating
forecasts for an increase of 0.6 percent following the 1.1 percent
contraction in the three months prior.
The aussie pulled back to 0.7715 against the greenback and 84.76
against the yen, off its early 1-week high of 0.7773 and a 3-week
high of 85.20, respectively. The aussie is seen locating support
around 0.75 against the greenback and 82.00 against the yen.
Retreating from its prior 5-day high of 1.5727 against the euro
and a 6-day high of 0.9373 against the loonie, the aussie slipped
to 1.5800 and 0.9316, respectively. The next possible support for
the aussie is seen around 1.61 against the euro and 0.90 against
the loonie.
In contrast, the aussie firmed to a 1-week high of 1.0707
against the kiwi, compared to yesterday's close of 1.0674. If the
aussie rises further, it may locate resistance around the 1.09
level.
Data from Statistics New Zealand showed that New Zealand terms
of trade rose 0.1 percent on quarter in the first three months of
2021.
That beat expectations for a decline of 0.1 percent following
the 1.3 percent increase in the previous three months.
Looking ahead, Canada building permits for April and Fed Beige
book report are set for release in the New York session.
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