Australian Dollar Falls; U.S. Dollar Rises On Stimulus Concerns
October 21 2020 - 11:59PM
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The Australian dollar fell and the U.S. currency appreciated in
the Asian session on Thursday amid rising risk aversion, as U.S.
officials warned that Russia and Iran are attempting to interfere
in U.S. elections and investors feared that U.S. lawmakers may not
reach an agreement on a new stimulus bill before the election.
The FBI said that Iran and Russia had obtained voter
registration information and had taken actions to disrupt the
election process.
Officials warned that the U.S. would impose costs on nations
trying to meddle in the upcoming presidential election.
U.S. President Donald Trump accused Democrats of being unwilling
to craft an acceptable compromise on stimulus.
"Just don't see any way Nancy Pelosi and Cryin' Chuck Schumer
will be willing to do what is right for our great American workers,
or our wonderful USA itself, on Stimulus," Trump posted to
Twitter.
Further undermining the mood was the International Monetary
Fund's downgrade of its 2020 growth forecast for the Asia-Pacific
region.
The aussie slipped to 0.7085 against the greenback, 1.6713
against the euro and 0.9334 against the loonie, after rising to
0.7119, 1.6645 and 0.9357, respectively in early deals. The aussie
is poised to find support around 0.68 against the greenback, 1.70
against the euro and 0.92 against the loonie.
The aussie dropped to a 3-month low of 1.0662 against the kiwi
and more than a 3-week low of 74.19 against the yen, off its
previous highs of 1.0704 and 74.46, respectively. The aussie is
seen finding support around 1.045 against the kiwi and 72.00
against the yen.
The greenback recovered from its early lows of 1.1865 against
the euro and 1.3152 against the pound, rising to 1.1838 and 1.3124,
respectively. Next key resistance for the greenback is seen around
1.20 against the euro and 1.28 against the pound.
The greenback appreciated to a 2-day high of 1.3178 against the
loonie, from a low of 1.3136 hit at 5:15 pm ET. The greenback is
likely test resistance around the 1.33 area.
Reversing from its prior lows of 0.9039 against the franc and
104.52 against the yen, the greenback edged higher to 0.9071 and
104.75, respectively. If the greenback extends rally, 0.94 and
108.00 are possibly seen as its next resistance levels against the
franc and the yen, respectively.
In contrast, the greenback eased to 0.6667 against the kiwi,
from a high of 0.6632 set at 8:15 pm ET. On the downside, 0.68 is
seen as its next likely support level.
Looking ahead, U.S. weekly jobless claims for the week ended
October 17 and existing home sales for September are due in the New
York session.
Eurozone flash consumer sentiment index for October is set for
release at 10:00 am ET.
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