Australian, NZ Dollars Drop Amid Growing Coronavirus Concerns
The Australian and NZ dollars fell against their major
counterparts in the Asian session on Friday, as a continued surge
in the coronavirus infections across the globe dampened hopes of
New U.S. Covid-19 infections hit fresh records and remained
above 100,000 for an eighth consecutive day, prompting cities and
states, including Chicago, Detroit and California, to slap new
restrictions on public life.
In Europe, Germany's health minister said he expects that
restrictions imposed to curb the coronavirus pandemic will continue
through winter. France intends to keep lockdown for at least two
The United Kingdom registered its biggest one-day jump in
laboratory-confirmed coronavirus infections.
Spain's southern region of Andalusia is attempting to carry out
mass testing in the areas of Ronda and Campillos.
On Thursday, Federal Reserve Chair Jerome Powell noted the
economic outlook remains uncertain despite recent upbeat news about
a potential coronavirus vaccine.
Data from Statistics New Zealand showed that New Zealand food
prices rose 2.7 percent on year in October, down from 3.1 percent
Individually, fruit and vegetable prices increased 10 percent on
year; while meat, poultry, and fish prices increased 1.0 percent;
grocery food prices increased 0.7 percent; non-alcoholic beverage
prices were flat; and restaurant meals and ready-to-eat food prices
increased 3.4 percent.
The kiwi slipped to 2-day lows of 0.6814 against the greenback
and 1.7322 against the euro, down from its early highs of 0.6845
and 1.7234, respectively. The next possible support for the kiwi is
seen around 0.66 against the greenback and 1.77 against the
The kiwi depreciated to a 2-day low of 1.0612 against the
aussie, from near a 7-month high of 1.0542 seen at 5 pm ET. The
kiwi is likely to find support around the 1.085 level.
The kiwi reversed from an early high of 71.97 against the yen,
touching a 4-day low of 71.49. On the downside, 70.00 is possibly
seen as its next support level.
The aussie dropped to an 8-day low of 0.7222 against the
greenback, reversing from a high of 0.7242 set at 6:45 pm ET. If
the aussie drops further, 0.69 is seen as its next support
The aussie weakened to 4-day lows of 75.76 against the yen and
1.6344 against the euro, after rising to 76.12 and 1.6301,
respectively in early deals. The aussie is poised to find support
around 74.00 against the yen and 1.66 against the euro.
In contrast, the aussie strengthened against the loonie,
approaching 0.9522. This followed a 2-day low of 0.9488 registered
at 5 pm ET. The aussie is likely to target resistance around the
Looking ahead, Eurozone trade report for September, employment
and GDP data for the third quarter are due in the European
U.S. PPI for October and University of Michigan's preliminary
consumer sentiment index for November are scheduled for release in
the New York session.