Australian, NZ Dollars Weaken On Virus Concerns
The Australian and NZ dollars fell against their major
counterparts in the Asian session on Monday, as worries over a new
variant of Covid-19 spreading in Britain and uncertainty about a
post-Brexit deal before the end of the year deteriorated risk
The British government on Saturday imposed tighter restrictions
on London and south-east England, warning that the new strain of
the virus was "out of control".
European countries have imposed travel bans on the U.K., while
other countries are expected to follow suit.
Virus cases continued to rise on Sydney in Australia, prompting
other states and territories to prohibit travelers from the
Resurgence in virus outbreaks around the globe overshadowed news
of U.S. lawmakers agreeing to the much-awaited aid package of
around $900 billion.
The aussie depreciated to 5-day lows of 0.7556 against the
greenback and 78.15 against the yen, off its early highs of 0.7606
and 78.64, respectively. The aussie is poised to find support
around 0.73 against the greenback and 76.00 against the yen.
The aussie reversed from its early highs of 1.6075 against the
euro and 0.9739 against the loonie and was trading at 1.6136 and
0.9704, respectively. The next key support for the aussie is seen
around 1.65 against the euro and 0.96 against the loonie.
The aussie pulled back to 1.0660 against the kiwi, after
touching 1.0700, which was its strongest level since November 9. If
the aussie slides further, 1.045 is likely seen as its next support
Data from the Reserve Bank of New Zealand showed that New
Zealand's credit card spending rose for the third month in a row in
Overall credit card spending rose 0.1 percent month-on-month in
November, after a 1.5 percent increase in October.
The kiwi weakened to 5-day lows of 0.7084 against the greenback
and 73.23 against the yen, down from its early highs of 0.7124 and
73.66, respectively. The kiwi is seen finding support around 0.68
against the greenback and 72.00 against the yen.
The kiwi edged down to 1.7212 against the euro, from a high of
1.7158 set at 6:00 pm ET. On the downside, 1.74 is likely seen as
its next support level.
Looking ahead, Canada new housing price index for November is
due in the New York session.
Eurozone flash consumer sentiment index for December is set for
release at 10:00 am ET.