Forex News: Commodity Currencies Slide Amid Risk-off Mood

Commodity Currencies Slide Amid Risk-off Mood

(RTTNews) - The commodity-linked currencies such as the Australia, the New Zealand and the Canadian dollars weakened against other major currencies in the Asian session on Monday, as Asian stock markets traded lower amid ongoing concerns about U.S. tariffs after U.S. President Donald Trump announced that his government will send letters to around 170 trading partners outlining new, simple unilateral tariffs that will take effect on August 1.

There is also concern over Trump's "Big, Beautiful Bill," which will add at least $3.3 trillion to the country's already-mammoth national debt and leave an added 12 million Americans without health insurance.

Crude oil prices traded lower on easing geopolitical concerns in the Middle East. West Texas Intermediate crude for August delivery was down $0.51 or 0.76 percent to finish at $66.49 per barrel.

The Asian market is facing a cloud of uncertainty due to concerns about an interruption in international trade.

On Tuesday, the Reserve Bank of Australia (RBA) may make a dovish statement and is anticipated to lower interest rates.

In addition to lowering its benchmark interest rate by 25 basis points on Tuesday, the Reserve Bank of Australia is expected to issue a dovish statement, highlighting the negative risks to the economy posed by the uncertainties around U.S. tariffs. It is unlikely that the monetary policy announcement on Tuesday would give the Australian dollar any notable momentum.

In the Asian trading now, the Australian dollar fell to nearly a 3-month low of 1.8098 against the euro and a 4-day low of 94.24 against the yen, from Friday's closing quotes of 1.7975 and 94.73, respectively. If the aussie extends its downtrend, it is likely to find support around 1.88 against the euro and 92.00 against the yen.

Against the U.S. and the Canadian dollars, the aussie slipped to near 2-week lows of 0.6501 and 0.8867 from last week's closing quotes of 0.6553 and 0.8915, respectively. The aussie may test support around 0.63 against the greenback and 0.87 against the loonie.

The NZ dollar fell to nearly a 3-month low of 1.9588 against the euro, nearly a 2-week low of 0.6007 against the U.S. dollar and a 4-day low of 87.08 against the yen, from Friday's closing quotes of 1.9426, 0.6063 and 87.66, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.98 against the euro, 0.58 against the greenback and 86.00 against the yen.

Against the Australian dollar, the kiwi edged down to 1.0830 from last week's closing value of 1.0808. On the downside, 1.09 is seen as the next support level for the kiwi.

The Canadian dollar fell to 5-day lows of 1.3641 against the U.S. dollar and 1.6052 against the 1.6024, from last week's closing quotes of 1.3604 and 1.6024, respectively. If the loonie extends its downtrend, it is likely to find support around 1.37 against the greenback and 1.61 against the euro.

Against the yen, the loonie slid to a 4-day low of 105.95 from Friday's closing value of 106.27. The next possible downside target for the loonie is seen around the 104.00 region.

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