Australian, NZ Dollars Fall Amid Weak China Data, Virus Fears
June 14 2020 - 11:46PM
RTTF2
The Australian and NZ dollars weakened against their major
counterparts in the Asian session on Monday, as disappointing
economic data from China and intensifying worries over a second
wave of coronavirus infections dampened risk sentiment.
China's industrial production grew 4.4 percent on a yearly basis
in May, faster than the 3.9 percent increase logged in April, data
from the National Bureau of Statistics showed. Economists had
forecast a 5 percent rise.
Retail sales dropped at a slower pace of 2.8 percent in May from
last year, slower than the 7.5 percent decrease seen in April.
Sales were forecast to fall 2 percent.
During January to May, fixed asset investment decreased 6.3
percent from the same period of last year while economists had
forecast a 5.9 percent fall.
China as well as the U.S. states of Texas and North Carolina
reported a rise in the coronavirus infections during the
weekend.
Survey from BusinessNZ showed that New Zealand services sector
continued to contract in May, albeit at a slower pace, with a
Performance of Services Index score of 37.2.
That's up from 25.9 in April, although it remains well beneath
the boom-or-bust line of 50 that separates expansion from
contraction.
The aussie fell to near a 2-week low of 0.6788 against the
greenback, after climbing to 0.6845 at 10:15 pm ET. The aussie is
seen finding support around the 0.66 level.
The aussie edged down to 72.70 against the yen and 1.6563
against the euro, from its early highs of 73.53 and 1.6409,
respectively. The next possible support for the aussie is seen
around 70.00 against the yen and 1.70 against the euro.
The aussie slipped back to 1.0602 against the kiwi, heading
closer to pierce a 6-week low of 1.0601 seen earlier in the
session. The aussie is poised to challenge support around the 1.03
level.
The kiwi dropped to near a 2-week low of 0.6391 against the
greenback, from a high of 0.6452 seen at 5:15 pm ET. On the
downside, 0.62 is likely seen as the next support for the kiwi.
The kiwi reversed from its early highs of 69.27 against the yen
and 1.7413 against the euro and was trading lower at 68.45 and
1.7586, respectively. Next key support for the kiwi is possibly
seen around 67.00 against the yen and 1.78 against the euro.
Looking ahead, Eurozone trade data for April is due in the
European session.
In the New York session, Canada manufacturing sales for April
and New York Fed's empire manufacturing survey for June are set for
release.
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