Australian, NZ Dollars Fall On China Policy Tightening Concerns
The Australian and NZ dollars slipped against their major
counterparts in the Asian session on Friday, as strong China
inflation data triggered concerns about tightening of monetary
Official data showed that China's consumer prices rose 0.4
percent on year in March, beating expectations for an increase of
0.3 percent following the 0.2 percent contraction in the previous
Producer prices jumped 4.4 percent on year in March, up from the
1.7 percent rise in February. Economists had forecast an increase
of 3.5 percent.
Investors reacted to the continued surge in coronavirus cases in
the region and the possible restrictions on economic activity.
The Australian government had ordered an additional 20 million
doses of the Pfizer vaccine, as health advice warned of a potential
link between rare blood clots and the AstraZeneca vaccine.
The latest survey from the Australian Industry Group showed that
Australia's services sector continued to expand in March, and at a
faster rate, with a seasonally adjusted Performance of Services
Index score of 58.7.
That's up from 55.8 in February and it moves further above the
boom-or-bust line of 50 that separates expansion from contraction.
It also marked the highest reading for the index since June
The aussie dropped to an 8-day low of 0.7588 against the
greenback, from a 2-day high of 0.7661 seen at 8:00 pm ET. Should
the aussie falls further, it is likely to test support around the
The Australian currency depreciated to a 2-week low of 83.04
against the yen and more than a 5-week low of 1.5663 against the
euro, off its early highs of 83.76 and 1.5553, respectively. The
aussie is poised to challenge support around 81.00 against the yen
and 1.58 against the euro.
The aussie reversed from its eary highs of 0.9621 against the
loonie and 1.0849 against the kiwi, declining to a 3-day low of
0.9568 and a 4-day low of 1.0822, respectively. The next possible
support for the aussie is seen around 0.93 against the loonie and
1.06 against the kiwi.
The kiwi weakened to 0.7009 against the greenback, from a 2-day
high of 0.7066 hit at 8:45 pm ET. The kiwi is seen finding support
around the 0.74 mark.
The kiwi touched a 2-day low of 1.6956 against the euro and an
11-day low of 76.70 against the yen, down from its early high of
1.6866 and a 2-day high of 77.24, respectively. The kiwi may locate
support around 1.71 against the euro and 74.00 against the yen.
Looking ahead, Canada jobs data and U.S. PPI for March and
wholesale inventories for February will be published in the New