Australian, NZ Dollars Decline Amid Rising Risk Aversion
The Australian and NZ dollars fell against their major
counterparts in the Asian session on Wednesday amid rising risk
aversion, as coronavirus lockdowns in Europe and safety worries
about a popular coronavirus vaccine dented hopes of global economic
Germany, France and Italy have expanded virus-related curbs amid
a third wave of infections.
The head of the World Health Organization said recent increases
in deaths and cases represent "truly worrying trends." A U.S.
health agency said that AstraZeneca may have relied on outdated
information in its latest coronavirus vaccine study.
In economic news, the manufacturing sector in Australia
continued to expand in March, and at a slightly faster pace, the
latest survey from Markit Economics showed with a manufacturing PMI
score of 57.0.
That's up from 56.9 in February and it moves further above the
boom-or-bust line of 50 that separates expansion from
The aussie dropped to a 1-1/2-month low of 0.7583 against the
greenback and more than a 3-week low of 82.29 against the yen, off
its early highs of 0.7634 and 82.92, respectively. Next key support
for the aussie is likely seen around 0.72 against the greenback and
80.00 against the yen.
The aussie fell to near a 3-week low of 1.5608 against the euro
and a 3-1/2-month low of 0.9556 against the loonie, from its prior
highs of 1.5509 and 0.9605, respectively. The aussie is poised to
find support around 1.57 against the euro and 0.94 against the
The kiwi weakened to a 4-month low of 0.6967 against the
greenback and more than a 5-week low of 75.63 against the yen,
after gaining to 0.7008 and 76.18, respectively in earlier deals.
On the downside, 0.68 and 73.00 are possibly seen as its next
support levels against the greenback and the yen, respectively.
The kiwi declined to near a 2-month low of 1.6984 against the
euro and held steady thereafter. At yesterday's close, the pair was
valued at 1.6921.
The kiwi edged down to 1.0901 versus the aussie from an early
high of 1.0861. The kiwi is seen finding support around the 1.12
Looking ahead, PMI reports from major European economies are due
in the European session.
U.S. durable goods orders for February will be featured in the
New York session.
At 10:00 am ET, Federal Reserve Chair Jerome Powell will testify
before the Senate Banking Committee on the CARES Act, along with
Treasury Secretary Janet Yellen, via satellite.