Australian, NZ Dollars Lower Amid Rising Risk Aversion
16 July 2020 - 2:02PM
RTTF2
The Australian and NZ dollars moved down against their major
counterparts in the Asian session on Thursday, as rising U.S-China
tensions and concerns about the economic cost of the coronavirus
pandemic dampened sentiment.
Investors remained cautious due to the rising number of
coronavirus cases worldwide, including a record single-day spike in
new COVID-19 cases in the U.S.
Markets shrugged off robust China GDP data in the second
quarter.
The National Bureau of Statistics said that China's GDP advanced
3.2 percent on year in the second quarter of 2020, topping
forecasts for an increase of 2.5 percent after tumbling 6.8 percent
in the three months prior.
Data from the Australian Bureau of Statistics showed that the
Australian economy gained 210,800 jobs in June - blowing past
expectations for the addition of 112,500 jobs following the loss of
227,700 jobs in May.
The unemployment rate came in at a seasonally adjusted 7.4
percent in June - in line with forecasts and up from 7.1 percent in
the previous month.
The aussie dropped to 0.6983 against the greenback and 1.6328
against the euro, down from its previous highs of 0.7012 and
1.6266, respectively. Next immediate support for the aussie is
likely seen around 0.68 against the greenback and 1.65 against the
euro.
After rising to 75.00 against the yen and 0.9472 against the
loonie in early deals, the aussie depreciated to 2-day lows of
74.68 and 0.9436, respectively. The next possible support for the
aussie is located around 72.5 against the yen and 0.93 against the
loonie.
The aussie eased back to 1.0652 against the kiwi, not far from a
2-day low of 1.0650 set at 6:45 pm ET. On the downside, 1.04 is
possibly seen as its next support level.
The kiwi edged lower to 0.6552 against the greenback and 70.06
against the yen, off its early highs of 0.6578 and 70.33,
respectively. The kiwi may challenge support around 0.63 against
the greenback and 68.00 against the yen.
Pulling away from a 2-day high of 1.7343 recorded at 5:45 pm ET,
the kiwi slipped to 1.7410 against the euro. The kiwi is poised to
challenge support around the 1.78 mark.
Looking ahead, the European Central Bank will announce interest
rate decision at 7:45 am ET. The ECB is expected to hold its main
refi rate at a record low zero percent and the deposit rate at
-0.50 percent.
U.S. retail sales for June, NAHB housing market index for July,
business inventories for May and weekly jobless claims for the week
ended July 11 will be featured in the New York session.
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