Commodity Currencies Weaken Amid Rising Risk Aversion
26 February 2019 - 1:17PM
RTTF2
The commodity currencies such as the Australian, the New Zealand
and the Canadian dollars declined against their major counterparts
in the Asian session on Tuesday amid rising risk aversion, as
optimism over U.S-China talks faded and investors awaited second
summit between U.S. President Donald Trump and North Korean leader
Kim Jong Un in Vietnam.
The summit, due this week, will be focused on the
denuclearization agreement that Trump and Kim signed in the
Singapore summit last summer.
Federal Reserve Chairman Jerome Powell will testify before a US
Senate committee later in the day, with investors awaiting fresh
clues about the outlook for U.S. interest rates.
Powell is expected to stick to a patient stance on rate hikes,
reflecting "muted" inflation and geopolitical uncertainties.
Powell will appear again before the House Financial Services
Committee on Wednesday.
The aussie declined to 0.7151 against the greenback and 79.22
against the yen, from its early highs of 0.7173 and 79.67,
respectively. If the aussie drops further, 0.69 and 77.5 are
possibly seen as its next support levels against the greenback and
the yen, respectively.
Reversing from its early highs of 1.5833 against the euro and
1.0421 against the kiwi, the aussie pulled back to 1.5883 and
1.0395, respectively. On the downside, 1.60 and 1.02 are likely
seen as the next support levels for the aussie against the euro and
the kiwi, respectively.
The kiwi edged down to 0.6875 against the greenback, 76.20
against the yen and 1.6520 against the euro, reversing from its
previous highs of 0.6889, 76.50 and 1.6491, respectively. The next
possible support for the kiwi is seen around 0.67 against the
greenback, 74.00 against the yen and 1.67 against the euro.
The loonie dropped to 4-day lows of 1.3201 against the
greenback, 1.4998 against the euro and 83.91 against the yen, off
its early highs of 1.3182, 1.4972 and 84.24, respectively. The
loonie is likely to challenge support around 1.34 against the
greenback, 1.51 against the euro and 82.00 against the yen.
Looking ahead, U.K. mortgage approvals for January are due in
the European session.
At 5:00 am ET, the Bank of England Governor Mark Carney, along
with MPC members Dave Ramsden, Gertjan Vlieghe and Jonathan Haskel
will testify on inflation and the economic outlook before
Parliament's Treasury Committee.
In the New York session, U.S. consumer sentiment index and
Richmond Fed manufacturing survey for February, housing starts,
building permits, S&P/Case-Shiller home price index, all for
December, are scheduled for release.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Apr 2024 to May 2024
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From May 2023 to May 2024