Australian, NZ Dollars Fall In Cautious Trade
The Australian and NZ dollars weakened against their major
counterparts in the Asian session on Wednesday, as weak U.S.
economic data sparked recession concerns and investors awaited Fed
Chairman Jerome Powell's speech at the Jackson Hole Symposium for
more signals on inflation and the rate outlook.
Data from S&P Global showed on Tuesday that US manufacturing
PMI declined to 51.3 in August from 52.2 in July and the services
PMI plunged to 44.1 from 47.3.
Data from the Commerce Department showed that U.S. new home
sales dropped 12.6% month-over-month to a seasonally adjusted
511,000 in July, the lowest reading since January 2016.
Powell will deliver a speech at the Jackson Hole Symposium on
Friday, with investors awaiting more clues about policy
Federal Reserve bank of Minneapolis President Neel Kashkari said
that inflation is much more embedded at a much higher level than
the policy makers or markets appreciate and an aggressive stance is
needed to bring it back down.
The aussie dropped to 0.6895 against the greenback and 0.8949
against the loonie, from its early highs of 0.6931 and 0.8980,
respectively. The aussie is likely to face support around 0.67
against the greenback and 0.88 against the loonie.
Reversing from its early highs of 94.77 against the yen and
1.4377 against the euro, the aussie slipped to 94.19 and 1.4428,
respectively. Next key support for the aussie is likely seen around
90.5 against the yen and 1.48 against the euro.
The kiwi depreciated to a 2-day low of 84.44 against the yen and
near a 4-week low of 1.1169 against the aussie, off its early highs
of 85.02 and 1.1135, respectively. The kiwi is seen finding support
around 82.00 against the yen and 1.13 against the aussie.
The kiwi edged down to 0.6179 against the greenback and 1.6100
against the euro, down from its early highs of 0.6219 and 1.6025,
respectively. The next possible support for the kiwi is seen around
0.60 against the greenback and 1.63 against the euro.
Looking ahead, Canada wholesale sales and U.S. durable goods
orders and pending home sales, all for July, are due in the New
AUD vs NZD (FX:AUDNZD)
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