Australian Dollar Falls In Cautious Trade
18 June 2021 - 1:02PM
RTTF2
The Australian dollar fell against its most major opponents in
the Asian session on Friday, as investors weighed the prospects of
a sooner-than-expected tightening of monetary policy by the U.S.
Federal Reserve.
The Fed brought forward its projections for interest rate hikes
into 2023 and indicated that officials had started talks about the
process for withdrawing bond buying program.
The Fed's hawkish shift triggered a sharp pullback in the equity
markets as the economy remained "a ways off" from reaching the
employment goal.
Investors are pondering the possible timing of the start of
winding down the QE program.
Oil prices fell amid a high dollar, as the Fed penciled in two
potential rate hikes in 2023, faster than projected by
policymakers.
The aussie weakened to near a 6-month low of 0.7511 against the
greenback and near a 3-month low of 82.76 against the yen, pulling
away from its prior highs of 0.7561 and 83.38, respectively. The
next possible support for the currency is seen around 0.72 against
the greenback and 80.00 against the yen.
The aussie reversed from its previous highs of 1.5752 against
the euro and 0.9336 against the loonie, declining to a fresh 2-week
low of 1.5844 and a 2-week low of 0.9297, respectively. The aussie
may locate support around 1.60 against the euro and 0.90 against
the loonie.
In contrast, the aussie rose to a 2-day high of 1.0805 against
the kiwi from Thursday's close of 1.0769. If the aussie rises
further, 1.10 is likely seen as its next resistance level.
Looking ahead, Eurozone current account for April will be
published in the European session.
Canada new housing price index for May is set for release in the
New York session.
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