Forex News: Antipodean Currencies Fall Amid Risk-off Mood

Antipodean Currencies Fall Amid Risk-off Mood

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars weakened against their major currencies in the Asian session on Tuesday, as traders looked to cash in on the recent strong gains and remain cautious ahead of the release of key US economic data later in the week, including second quarter GDP and the US Fed's preferred readings on consumer price inflation.

U.S. President Donald Trump threatened to put a 200% tariff on Chinese imports if China refused to provide magnets to the US, which kept the AUD and NZD muted.

The Reserve Bank of Australia's (RBA) August monetary policy meeting minutes indicated that board members concurred that additional cash rate reductions are probably required in the upcoming year, which further threatens the AUD. At its August meeting last week, the central bank of New Zealand lowered the Official Cash Rate (OCR) by 25 basis points (bps) to 3.0%.

As policymakers cautioned about both internal and international growth obstacles, the RBNZ indicated more cuts would be made in the upcoming months. Markets are currently pricing in a move in October with a nearly 50% chance and a move in November with a 100% chance.

In the Asian trading today, the Australian dollar fell to a 4-day low of 0.6471 against the U.S. dollar, from yesterday's closing value of 0.6482. The aussie may test support near the 0.63 region.

Against the yen, the euro and the Canadian dollar, the aussie slid to 95.37, 1.7982 and 0.8968 from Monday's closing quotes of 95.81, 1.7919 and 0.8983, respectively. If the aussie extends its downtrend, it is likely to find support around 94.00 against the yen, 1.81 against the euro and 0.88 against the loonie.

The NZ dollar fell yo a 4-day low of 0.5829 against the U.S. dollar and nearly a 6-month low of 1.1106 against the Australian dollar, from yesterday's closing quotes of 0.5849 and 1.1082, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.57 against the greenback and 1.12 against the aussie.

Against the yen and the euro, the kiwi edged down to 86.00 and 1.9947 from Monday's closing quotes of 86.45 and 1.9858, respectively. The kiwi is likely to find support near 84.00 against the yen and 2.00 against the euro.

Looking ahead, Canada manufacturing sales data for July, U.S. durable goods orders for July, U.S. Redbook report, U.S. S&P/Case-Shiller home price for June, U.S. Consumer Board's consumer confidence for August and U.S. Dallas Fed services index for August is slated for release in the New York session.

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