Forex News: Antipodean Currencies Slide Ahead Of Christmas Day Holidays

Antipodean Currencies Slide Ahead Of Christmas Day Holidays

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars weakened against their major currencies in the Asian session on Monday, as traders seemed reluctant to make more significant moves amid what is likely to be a quiet week due to the Christmas Day holidays.

China's Ministry of Finance announced that the government will increase fiscal spending in 2025 and intend to speed up measures to reduce risks in important industries. The Ministry of Finance also stated that fiscal spending will increase consumption and concentrate more on people's livelihoods as part of the government's commitment to promoting domestic demand growth.

Markets expect the Reserve Bank of Australia (RBA) is likely to begin rate cuts in February, also led to the downturn of the Australian dollar.

In economic news, members of the Reserve Bank of Australia's Monetary Policy Board said that the country's gross domestic product continues to be subdued and is softer than expected, minutes from the central bank's December 9-10 meeting revealed on Tuesday.

At the meeting, the RBA Policy Board held the cash rate target at a 13-year high of 4.35 percent. The previous change in the interest rate was in November 2023, when it was lifted by 25 basis points to the highest level since late 2011.

Meanwhile, the U.S. dollar appreciated as the Fed policymakers signaled fewer rate cuts in 2025 due to a slowdown in the disinflation process.

Crude oil prices settled lower amid concerns about possible excess supply in the market, while a stronger dollar also weighed on oil prices. West Texas Intermediate Crude oil futures for February dipped $0.26 or 0.3 percent at $69.20 a barrel.

In the Asian trading today, the Australian dollar fell to more than a 4-1/2-month low of 0.8953 against the Canadian dollar, from yesterday's closing value of 0.8974. The aussie may test support near the 0.88 region.

The aussie slipped to 97.76 against the yen and 1.6702 against the euro, from Monday's closing quotes of 98.16 and 1.6645, respectively. If the aussie extends its downtrend, it is likely to find support around 95.00 against the yen and 1.68 against the euro.

Against the U.S. and the New Zealand dollars, the aussie edged down to 0.6224 and 1.1044 from yesterday's closing quotes of 0.6246 and 1.1055, respectively. On the downside, 0.60 against the greenback and 1.08 against the kiwi are seen as the next support levels for the aussie.

The NZ dollar fell to 0.5635 against the U.S. dollar, from yesterday's closing value of 0.5648. The kiwi may test support near the 0.55 region.

Against the yen and the euro, the kiwi edged down to 88.50 and 1.8448 from Monday's closing quotes of 88.76 and 1.8416, respectively. If the kiwi extends its downtrend, it is likely to find support around 86.00 against the yen and 1.86 against the euro.

Looking ahead, U.S. Redbook report and U.S. Richmond Fed manufacturing index for December are slated for release in the New York session.

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