Forex News: Australian, NZ Dollars Lower On Fed Rate Hike

Australian, NZ Dollars Lower On Fed Rate Hike Concerns

(RTTNews) - The Australian and NZ dollars fell against their major counterparts in the Asian session on Friday, as strong U.S. data released overnight and hawkish Fed remarks fueled inflation and rate-hike worries.

Two Fed policymakers warned of additional hikes in borrowing costs to lower inflation back to the central bank's 2 percent target.

Fed President Loretta Mester said there is need for more tightening to tame inflation.

Separately, St. Louis Fed President James Bullard argued that there was a good case for the Fed to have been more aggressive with its recent rate decision.

The aussie declined to 0.6831 against the greenback, setting a 1-1/2-month low. The aussie may find support around the 0.66 level, should it drops again.

The aussie eased to 91.98 against the yen, after rising to 92.40 in early deals. The aussie is poised to challenge support around the 90.00 level.

The aussie declined to 0.9216 against the loonie and 1.5563 against the euro, reversing from its early highs of 0.9257 and 1.5505, respectively. The next likely support for the aussie is seen around 0.90 against the loonie and 1.57 against the euro.

The kiwi depreciated to 1.1007 against the aussie and held steady thereafter. On the downside, 1.12 is possibly seen as its next support level.

The kiwi dropped to a 1-1/2-month low of 0.6210 against the greenback and a 3-1/2-month low of 1.7120 against the euro, from its early highs of 0.6257 and 1.7049, respectively. The kiwi is seen challenging support around 0.60 against the greenback and 1.74 against the euro.

The kiwi was down against the yen, at a 2-day low of 83.68. Next immediate support for the currency is seen near the 80.00 region.

Looking ahead, Canada industrial product and raw materials price indexes and U.S. import and export prices, all for January, are due out in the New York session.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2023 RTTNews.com. All Rights Reserved

Market News provided by RTTNews