Antipodean Currencies Fall Ahead Of U.S. Presidential Election
25 October 2024 - 1:00PM
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The Antipodean currencies such as the Australia and the New
Zealand dollars weakened against their major currencies in the
Asian session on Friday, as investors are awaiting the outcome of
the U.S. presidential election on Sunday.
On Thursday, uncertainty over the U.S. election outcome weighed
on the tech sector. Tesla's forecast-beating earnings provided some
comfort for investors, helping limit regional losses.
The dollar held near three-month highs on increased expectations
of a possible return of Donald Trump to the White House and growing
bets the Federal Reserve may be more restrained in their easing
pace.
Gold drifted higher amid safe-haven demand as Middle East
tensions persisted. Oil prices were up more than 1 percent in Asian
trading after retreating on Wednesday on data showing a larger than
expected increase in crude oil inventories in the U.S.
In economic news, the People's Bank of China kept its one-year
medium-term lending facility at an unchanged rate of 2.0
percent.
In the Asian trading today, the Australian dollar fell to nearly
a 3-week low of 1.6351 against the euro and a 3-day low of 100.31
against the yen, from yesterday's closing quotes of 1.6306 and
100.81, respectively. If the aussie extends its downtrend, it is
likely to find support around 1.66 against the euro and 98.00
against the yen.
Against the U.S. and the Canadian dollars, the aussie slipped to
2-day lows of 0.6618 and 0.9169 from Thursday's closing quotes of
0.6640 and 0.9199, respectively. The aussie may test support near
0.63 against the greenback and 0.90 against the loonie.
The NZ dollar fell to nearly a 2-1/2-month low of 0.5987 against
the U.S. dollar, more than a 2-week low of 1.8074 against the euro
and a 3-day low of 90.78 against the yen, from yesterday's closing
quotes of 0.6014, 1.7997 and 91.30, respectively. If the kiwi
extends its downtrend, it is likely to find support around 0.58
against the greenback, 1.81 against the euro and 89.00 against the
yen.
Against the Australian dollar, the kiwi edged down to 1.1058
from Thursday's closing value of 1.1037. On the downside, 1.11 is
seen as the next support level for the kiwi.
Looking ahead, Eurozone consumer inflation expectations for
September and Germany Ifo business climate index for October are
due to be released in the European session.
In the New York session, Canada new housing price index for
September, retail sales data for August, U.S. durable goods orders
for September, U.S. University of Michigan's consumer sentiment
index for October, Canada budget balance report for August and U.S.
Baker Hughes weekly oil rig count data are slated for release.
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