Commodity Currencies Slide Amid Risk Aversion
July 24 2024 - 11:11PM
RTTF2
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 risk aversion, following the broadly
negative cues from global markets overnight, led by steep declines
for technology stocks, which mirrored their peers on the tech-heavy
Nasdaq, after a few big-name U.S. tech firms reported disappointing
quarterly numbers. Lingering concerns over slowing growth in the
world's second largest economy, China, also kept investors
nervous.
Traders also remained cautious ahead of the release of key U.S.
GDP and inflation data later in the week, which could have a
significant impact on the outlook for interest rates.
In the Asian trading now, the Australian dollar fell to more
than a 3-month lows of 1.6574 against the euro and 99.71 against
the yen, from yesterday's closing quotes of 1.6466 and 101.26,
respectively. If the aussie extends its downtrend, it is likely to
find support around 1.67 against the euro and 98.00 against the
yen.
Against the U.S., the Canada and the New Zealand dollars, the
aussie slid to nearly a 3-month low of 0.6540, nearly a 2-1/2-month
low of 0.9039 and a 1-week low of 1.1060 from Wednesday's closing
quotes of 0.6581, 0.9084 and 1.1094, respectively. The aussie may
test support near 0.64 against the greenback, 0.88 against the
loonie and 1.08 against the kiwi.
The NZ dollar fell to nearly a 3-month low of 0.5913 against the
U.S. dollar and more than a 3-month low of 90.10 against the yen,
from Wednesday's closing quotes of 0.5930 and 91.23, respectively.
If the kiwi extends its downtrend, it is likely to find support
around 0.58 against the greenback and 89.00 against the yen.
Against the euro, the kiwi edged down to 1.8333 from yesterday's
closing value of 1.8273. On the downside, 1.84 is seen as the next
support level for the kiwi.
The Canadian dollar fell to more than a 3-month low of 1.3822
against the U.S. dollar and more than a 4-month low of 110.17
against the yen, from Wednesday's closing quotes of 1.3807 and
111.43, respectively. If the loonie extends its downtrend, it is
likely to find support around 1.39 against the greenback and 109.00
against the yen.
Against the euro, the loonie edged down to 1.4988 from
yesterday's closing value of 1.4963. The next possible downside
target for the loonie is seen around the 1.51 region.
Looking ahead, Germany's Ifo business sentiment survey data for
July, European Central Bank's euro area monetary aggregates data
for June and the Confederation of British Industry's industrial
trends survey results for July are slated for release in the
European session.
In the New York session, Canada average weekly earnings data for
May, U.S. durable goods orders for June, GDP growth rate for the
second quarter, weekly jobless claims data, U.S. core PCE price
index for the second quarter and U.S. Kansas Fed manufacturing
index for July are slated for release.
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