Forex News: Antipodean Currencies Fall Amid Middle East Tensions

Antipodean Currencies Fall Amid Middle East Tensions

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars weakened against other major currencies in the Asian session on Thursday, as traders remain cautious amid the resurgence of Middle East tensions and the resulting recent spike in crude oil prices, fueling inflation concerns. Fairly tame US consumer price data eased concerns about the outlook for interest rates as inflation rose in line with estimates.

Intermediaries are sparing no efforts to revive the stalled U.S.-Iran peace talks. Pakistan announced initiating efforts to bring the U.S. and Iran back to the negotiating table.

The prospects of an early reopening of the Strait of Hormuz diminished after Iran demanded monetary compensation for war-inflicted damages. Iran warned that it would not reopen the Strait if the U.S. failed to comply with its demands. RBA Governor Michele Bullock actually stressed that there are still upside risks to inflation and made it clear that the board is ready to boost interest rates once more if price pressures don't show enough decline.

Less than three months before the country's elections, Christopher Luxon, the prime minister of New Zealand, overcame a challenge from his defense minister in a vote of confidence on Wednesday, adding to the evidence of divisions within the ruling National Party.

Crude oil prices inched lower after Pakistan announced initiating efforts to bring the U.S. and Iran back to the negotiating table. West Texas Intermediate crude for September delivery was down $0.22 or 0.2 percent at $82.98 per barrel.

In the Asian trading today, the Australian dollar fell to a 2-day low of 0.7045 against the U.S. dollar, from yesterday's closing value of 0.7062. The AUD is likely to find support around the 0.69 region.

Against the yen and the euro, the aussie edged down to 112.22 and 1.6355 from Wednesday's closing quotes of 112.55 and 1.6320, respectively. If the aussie extends its downtrend, it is likely to find support around 110.00 against the yen and 1.65 against the euro.

The aussie dropped to 0.9826 against the Canadian dollar, from yesterday's closing value of 0.9847. On the downside, 0.96 is seen as the next support level for the aussie.

The NZ dollar fell to more than a 2-week low of 1.2094 against the Australian dollar and a 3-day low of 92.83 against the yen, from yesterday's closing quotes of 1.2054 and 0.5861, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.22 against the aussie and 92.00 against the yen.

Against the U.S. dollar and the euro, the kiwi dropped to 2-week lows of 0.5827 and 1.9774 from Wednesday's closing quotes of 0.5861 and 1.9671, respectively. The kiwi is likely to find support around 0.56 against the greenback and 2.00 against the euro.

Looking ahead, Eurozone industrial production for June is due to be release in the European session at 5:00 am ET.

In the New York session, U.S. PPI for July and U.S. weekly jobless claims data are slated for release.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2026 RTTNews.com. All Rights Reserved

Market News provided by RTTNews