Forex News: Commodity Currencies Slides Amid Risk-off Mood

Commodity Currencies Slides Amid Risk-off Mood

(RTTNews) - The commodity currencies such as Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the Asian session on Thursday amid increasing risk-off sentiment, reflecting the continued weakness in technology stocks which mirrored their peers on the tech-heavy Nasdaq amid valuation concerns. Traders also remain cautions as they focus on the Russia-Ukraine peace talks that began in the U.A.E. and the upcoming U.S.-Iran talks in Oman.

After two days of advances, the price of West Texas Intermediate (WTI) oil drops, closing at about $63.50 per barrel on Thursday during Asian hours.

Following Tehran's announcement that it would meet with the United States (US) in Oman on Friday, which allayed concerns that a wider confrontation may disrupt Middle East oil supplies, crude oil prices declined.

Talks will take place in Oman on Friday, according to Iranian Foreign Minister Abbas Araghchi, while a White House official confirmed ongoing discussions on a possible nuclear agreement.

There is still uncertainty on the scope, as Washington wants to bring up missiles, regional militancy, and human rights, while Tehran wants to keep the conversation focused on its nuclear program.

In the Asian trading today, the Australian dollar fell to 2-day lows of 109.09 against the yen and 1.6944 against the euro, from yesterday's closing quotes of 109.78 and 1.6872, respectively. The aussie may test support near 106.0 against the yen and 1.72 against the euro.

Against the U.S. and the Canadian dollars, the aussie slipped to 2-day lows of 0.6959 and 0.9521 from Wednesday's closing quotes of 0.6998 and 0.9562, respectively. The aussie is likely to find support around 0.68 against the greenback and 0.94 against the loonie.

The aussie edged down to 1.1637 against the NZ dollar, from Wednesday's closing value of 1.1656. On the downside, 1.14 is seen as the next support level for the aussie.

The NZ dollar fell to a 9-day low of 0.5977 against the U.S. dollar, from yesterday's closing value of 0.6004. The kiwi is likely to find support around the 0.58 region.

Against the yen and the euro, the kiwi slid to a 2-day low of 93.72 and a 3-day low of 1.9728 from Wednesday's closing quotes of 93.72 and 1.9665, respectively. If the kiwi extends its downtrend, it is likely to find support around 91.00 against the yen and 2.00 against the euro.

The Canadian dollar fell to a 3-day low of 1.3693 against the U.S. dollar, from yesterday's closing value of 1.3664. The loonie may test support near the 1.38 region.

Against the yen and the euro, the loonie edged down to 114.49 and 1.6138 from Wednesday's closing quotes of 114.81 and 1.6132, respectively. If the loonie extends its downtrend, it is likely to find support around 113.00 against the yen and 1.63 against the euro.

Looking ahead, Construction PMI reports from various European economies and U.K. for January and Eurozone retail sales data for December are slated for release in the European session.

At 7:00 am ET, the Bank of England is set to announce interest rate decision. The central bank is likely to keep its interest rate unchanged at 3.75 percent.

At 8:15 am ET, the European Central Bank (ECB) will announce its interest rate decision. The ECB is widely expected to leave its key interest rates unchanged at 2.15 percent.

Half-an-hour later, the ECB's President Christine Lagarde will speak in a press conference about more clues about the interest rate outlook over the coming months.

In the New York session, U.S. weekly jobless claims data is due to be released.

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