Australian, NZ Dollars Fall On New Virus Variant Concerns
The Australian and NZ dollars weakened against their major
counterparts in the Asian session on Tuesday, as the strict
lockdown measures and travel restrictions to stop the spread of new
strain of Covid-19 dampened hopes of a global economic
Several countries had announced travel bans to the U.K. due to
fears about the virus variant.
Oil prices dropped on fears that the new virus variant crisis
could slow recovery in fuel demand.
The approval of a $900 billion relief package by U.S.
Congressional leaders on Monday helped limit the downside.
Data from the Australian Bureau of Statistics showed that
Australia retail sales surged a seasonally adjusted 7.0 percent on
month in November - coming in at A$31.623 billion.
That blew away expectations for a decline of 0.6 percent
following the 1.4 percent increase in October.
The aussie slipped to 1.6191 against the euro and 0.7591 versus
the greenback, reversing from its early highs of 1.6118 and 0.7546,
respectively. The aussie is seen finding support around 1.65
against the euro and 0.70 versus the greenback.
The Australian currency pulled back from its early highs of
78.42 against the yen and 0.9750 against the loonie and was worth
78.05 and 0.9721, respectively. Should the aussie slides further,
it may challenge support around 75.00 against the yen and 0.94
against the loonie.
The kiwi edged down to 0.7052 against the greenback, 72.96
against the yen and 1.7326 against the euro, following its early
highs of 0.7106, 73.43 and 1.7198, respectively. Next key support
for the kiwi is likely seen around 0.68 against the greenback,
70.00 against the yen and 1.75 against the euro.
The kiwi touched 1.0715 against the aussie, its weakest level
since November 9. On the downside, 1.10 is possibly seen as its
next support level.
Looking ahead, U.S. GDP data for the third quarter, consumer
confidence for December and existing home sales for November are
due in the New York session.