Australian, NZ Dollars Fall On Delta Virus Worries
12 July 2021 - 5:57PM
RTTF2
The Australian and NZ dollars depreciated in the European
session on Monday, as concerns over the rising cases of the Delta
variant of the COVID-19 in Asia, U.S. and Europe dampened risk
sentiment.
Australia recorded its biggest daily rise in COVID-19 cases on
Monday despite a lockdown in the country's largest city Sydney.
Sydney registered 112 new infections on Monday with New South
Wales Premier Gladys Berejiklian warning that lifting the lockdown
in the city is highly unlikely at this stage.
New infections climbed in the U.S. to the most since mid-May on
Saturday.
Anthony Fauci, the top U.S. infectious disease specialist, said
"ideological rigidity" is preventing people from getting Covid-19
shots.
Investors adopted a cautious stance ahead of the release of U.S.
inflation data and testimony by Federal Reserve Chair Jerome Powell
due this week.
Data from the Australian Bureau of Statistics showed that
Australia building permits fell a seasonally adjusted 7.1 percent
on month in May - coming in at 20,163.
That matched expectations following the 5.7 percent decline in
April.
The kiwi dropped to 0.6962 against the greenback, 76.65 against
the yen and 1.7048 against the euro, off its prior 4-day highs of
0.7009, 77.25 and 1.6939, respectively. The kiwi is seen finding
support around 0.68 against the greenback, 74.00 against the yen
and 1.74 against the euro.
The kiwi slipped to a 6-day low of 1.0717 against the aussie,
after having advanced to a 4-day high of 1.0669 at 5 pm ET. If the
kiwi extends drop, 1.09 is seen as its next support level.
The aussie edged down to 0.7461 against the greenback, 1.5912
against the euro and 82.12 against the yen, following its previous
high of 0.7493, session's high of 1.5844 and a 4-day high of 82.59,
respectively. The aussie is likely to face support around 0.72
against the greenback, 1.62 against the euro and 80.00 against the
yen.
In contrast, the aussie bounced off to 0.9329 against the
loonie, from a low of 0.9309 seen at 9:30 pm ET. The aussie is
poised to challenge resistance around the 0.95 level.
Looking ahead, at 9:30 am ET, Federal Reserve Bank of New York
President John Williams will deliver a speech about inflation at a
webinar co-hosted by Bank of Israel and Centre for Economic Policy
Research.
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