empty
 
 

2020.03.1812:07:00UTC+00Australian, New Zealand Dollars Drop Amid Risk Aversion

The Australian and New Zealand dollars fell against their major counterparts in the European session on Wednesday amid risk aversion, as renewed concerns about a spreading coronavirus epidemic offset stimulus hopes.

The virus so far infected close to 200,000 people worldwide and killed more than 7,500. Imported coronavirus cases in China outpaced local infections for the 5th day.

U.S. President Donald Trump pressed for a $1 trillion stimulus package on Tuesday, aimed to deliver $1,000 cheques to Americans within two weeks to buttress an economy hit by coronavirus outbreak that has killed over 100 people in the country.

Data from Westpac showed that Australia's leading index signaled that the economy is entering an extremely difficult coronavirus period.

The Westpac- Melbourne Institute leading index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, fell to -0.96 percent in February from -0.49 percent in January.

The aussie dropped to 11-year lows of 1.8569 against the euro and 63.57 against the yen, from its early highs of 1.8248 and 64.86, respectively. The next likely support for the aussie lies around 1.90 against the euro and 61.00 against the yen.

The aussie fell to a 17-year low of 0.5920 against the greenback, from a high of 0.6028 seen at 1:00 am ET. Next near term support for the aussie is likely seen around the 0.58 level.

Reversing from an early high of 0.8559 versus the loonie, the aussie dropped to 0.8458. On the downside, 0.825 is likely seen as the next support level for the aussie.

The kiwi weakened to 9-day lows of 62.67 against the yen and 1.8815 against the euro, off its early highs of 64.21 and 1.8430, respectively. The kiwi is seen finding support around 59.00 against the yen and 1.90 against the euro.

The kiwi slipped to a 2-day low of 1.0153 against the aussie and an 11-year low of 0.5839 against the greenback, after rising to 1.0063 and 0.5968, respectively in early deals. The currency may challenge support around 1.045 against the aussie and 0.56 against the greenback, if it weakens further.

Looking ahead, Canada CPI, U.S. housing starts and building permits, all for February, are due out in the New York session.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback