Australian, NZ Dollars Fall On Rising Risk Aversion
The Australian and NZ dollars dropped against their major
counterparts in the Asian session on Thursday, amid rising risk
aversion on renewed worries about high inflation, slowing growth
and the outlook for interest rates.
Lowering of global growth forecasts by the World Bank and the
Organization for Economic Cooperation and Development weighed as
In its economic outlook, the Organisation for Economic
Co-operation and Development said on Wednesday that the global
growth is set to slow sharply this year than previously forecast as
the war in Ukraine triggered a cost-of-living crisis and the
zero-COVID policy of China added to supply chain disruptions.
Investors are looking ahead to the European Central Bank's
monetary policy announcement due later today, and the crucial data
on U.S. inflation due on Friday.
In China, Shanghai's Minhang district announced a new lockdown
to conduct nucleic acid tests for residents and restrictions will
be removed after that.
The aussie weakened to 2-day lows of 0.7161 against the
greenback and 1.1126 against the kiwi, off its early highs of
0.7197 and 1.1158, respectively. The aussie is poised to challenge
support around 0.70 against the greenback and 1.09 against the
The aussie fell to a 9-day low of 1.4963 against the euro and
near a 3-week low of 0.9002 against the loonie, from its early
highs of 1.4892 and 0.9033, respectively. The aussie is seen
finding support around 1.51 against the euro and 0.89 against the
Against the yen, the aussie reached as low as 95.87. The aussie
may locate support around the 92.00 level.
The NZ currency slipped to a 2-day low of 0.6432 against the
greenback and a new 2-week low of 1.6658 against the euro, after
rising to 0.6456 and 1.6614, respectively earlier in the session.
The next possible support for the kiwi is seen around 0.62 against
the greenback and 1.68 against the euro.
The kiwi was lower against the yen, at 86.13. The currency is
likely to face support around the 83.00 level.
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
U.S. weekly jobless claims for the week ended June 4 are due out
in the New York session.
AUD vs NZD (FX:AUDNZD)
From Jul 2022 to Aug 2022
AUD vs NZD (FX:AUDNZD)
From Aug 2021 to Aug 2022