Australian, NZ Dollars Drop On China, Fed Concerns
20 September 2021 - 2:03PM
RTTF2
The Australian and NZ dollars fell against their major
counterparts in the Asian session on Monday, as most Asian shares
fell amid jitters over China's crackdown on real-estate firms and
caution ahead of the U.S. Federal Reserve meeting due this
week.
The Fed's two-day policy meeting will end on Wednesday, with
markets seeking more clues about the withdrawal of the QE
program.
Fed Chair Jerome Powell said that the tapering could happen this
year depending upon the strengthening of the economy.
Other major central banks due to hold monetary policy meeting
this week include the Bank of Japan, the Bank of England and the
Swiss National Bank.
U.S. Treasury Secretary Janet Yellen called on Congressional
lawmakers to raise the federal debt ceiling to avert a possible
default that could occur during October.
The aussie weakened to more than 3-week lows of 0.7227 against
the greenback and 1.6205 against the euro, off its early highs of
0.7268 and 1.6135, respectively. The next possible support for the
aussie is seen around 0.70 against the greenback and 1.65 against
the euro.
The aussie reversed from its prior highs of 79.96 against the
yen and 1.0336 against the kiwi, dropping to near a 4-week low of
79.37 and a 4-day low of 1.0289, respectively. If the aussie
continues its fall, 77.5 and 1.00 are possibly seen as its next
support levels against the yen and the kiwi, respectively.
The aussie eased off to 0.9242 against the loonie, from a 5-day
high of 0.9279 seen at 6:45 pm ET. The aussie is seen finding
support around the 0.90 level.
The kiwi was lower at near 3-week lows of 0.7014 against the
greenback and 77.02 against the yen, down from its previous highs
of 0.7043 and 77.48, respectively. The kiwi is poised to challenge
support around 0.68 against the greenback and 75.00 against the
yen.
The kiwi dropped to 1.6700 against the euro, following a high of
1.6641 hit at 6 pm ET. Next key support for the kiwi is likely seen
around the 1.70 level.
Looking ahead, U.S. NAHB housing market index for September is
scheduled for release in the New York session.
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