Australian, NZ Dollars Lower On Virus Worries
10 July 2020 - 2:21PM
RTTF2
The Australian and NZ dollars lost ground against their major
counterparts in the Asian session on Friday, as a surge in U.S.
coronavirus cases triggered concerns about fresh lockdowns that
could harm the economic recovery.
The United States recorded at least 60,565 new Covid-19 cases on
Thursday, the largest single-day tally of cases by any country
since the pandemic began.
The country's three biggest states — California, Florida and
Texas — are reporting their largest single-day death tolls since
the pandemic began, raising uncertainty about a recovery from the
pandemic.
While some states are rolling back their reopenings, others are
ordering people arriving from hotspots to quarantine.
Greek authorities said they are ready to re-impose public and
travel restrictions next week. Italy has banned entry to people
coming from 13 countries.
The World Health Organization said it is keeping an "open mind"
on whether airborne transmission plays a major role in spreading
the virus.
The aussie dropped to a 9-day low of 74.02 against the yen and a
3-day low of 0.6924 against the greenback, from its early highs of
74.68 and 0.6966, respectively. The aussie is seen finding support
around 70.00 against the yen and 0.64 against the greenback.
Reversing from its early highs of 1.6192 against the euro and
0.9461 versus the loonie, the aussie edged lower to 1.6265 and
0.9432, respectively. The currency is likely to target support
around 1.65 against the euro and 0.92 versus the loonie.
The aussie fell to 1.0569 versus the kiwi, its lowest level
since April 22. If the aussie falls further, 1.02 is likely seen as
its next possible support level.
The kiwi weakened to a 1-week low of 70.01 against the yen and a
2-day low of 0.6546 against the greenback, off its early highs of
70.47 and 0.6572, respectively. The kiwi is poised to face support
around 67.00 against the yen and 0.62 against the greenback.
The kiwi reversed from its early 4-1/2-month high of 1.7162
against the euro and declined to 1.7217. On the downside, 1.75 is
possibly seen as its next support level.
Demand for safe havens such as the yen and the greenback rose
amid COVID-19 concerns.
The yen climbed to a 2-week high of 106.83 against the
greenback, 9-day highs of 120.30 against the euro and 113.39
against the franc, after falling to 107.26, 121.07 and 114.05,
respectively in early deals. The yen may face resistance around 104
against the greenback, 116.00 against the euro and 108.00 against
the franc, should it rallies again.
The yen appreciated to a 3-day high of 134.39 against the pound
and an 11-day high of 78.42 versus the loonie, up from its early
lows of 135.20 and 78.97, respectively. Further uptrend may take
the yen to a resistance around 129.00 against the pound and 76.00
versus the loonie.
The greenback strengthened to a 4-day high of 1.1258 against the
euro, 2-day highs of 0.9424 against the franc and 1.2572 against
the pound, following a decline to 1.1290, 0.9398 and 1.2611,
respectively in early deals. Next key resistance for the greenback
is seen around 1.10 against the euro, 0.96 against the franc and
1.20 against the pound.
Looking ahead, Canada jobs data and U.S. producer prices for
June are due in the New York session.
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