Australian Dollar Slides On Risk Aversion
22 July 2019 - 1:14PM
RTTF2
The Australian dollar weakened against its major counterparts in
the Asian session on Monday, as expectations of an aggressive
interest rate cut by the U.S. Federal Reserve reduced and Middle
East tensions intensified, diminishing the appeal of high-yielding
assets.
Hopes for a smaller cut increased after a Wall Street Journal
report that Fed officials are unlikely to take bolder now and may
pursue further cuts in the future given slowing global growth and
trade uncertainty.
Geopolitical tensions remained after a British-flagged tanker
was seized by Iran in the Gulf.
Traders await reports on new and existing home sales, durable
goods orders and second quarter GDP this week for clues on the
health of the world's largest economy.
The aussie declined to a 4-day low of 0.7031 against the
greenback from Friday's closing value of 0.7039. The next possible
support for the aussie is seen around the 0.69 level.
The aussie that ended last week's trading at 1.5920 against the
euro weakened to 1.5948. The aussie is seen finding support around
the 1.625 region.
The aussie depreciated to 1.0386 against the kiwi for the first
time since March 27. On the downside, 1.02 is possibly seen as the
next support level for the aussie.
The Australian currency fell to a 4-day low of 0.9186 against
the loonie, down from Friday's closing quote of 0.9195. If the
aussie extends decline, 0.90 is possibly seen as its next support
level.
The aussie pared gains to 75.93 against the yen, from a high of
76.07 hit at 9:30 pm ET. The aussie is likely to find support
around the 74.00 area.
Looking ahead, Canada wholesale sales for May are due at 8:30 am
ET.
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