Australian, New Zealand Dollars Down As Coronavirus Fears Mount
February 27 2020 - 10:46PM
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The Australian and New Zealand dollars dropped against their
major counterparts in the Asian session on Friday, as Asian stock
markets plunged after the head of the World Health Organization
warned that the deadly epidemic has reached a "decisive point" and
has the potential to become a pandemic.
In New York state, 700 people are being monitored for possible
coronavirus exposure. California is monitoring 8,400 people for
signs of the virus after they traveled to Asia.
The number of new coronavirus cases in South Korea crossed
2,000, and those in Italy 500.
Italy, Iran and Kuwait have reported more infections, while
Nigeria confirmed its first case. Saudi Arabia banned foreign
pilgrims entering the country to prevent the spread of the deadly
virus in the Kingdom.
Data from the Reserve Bank of Australia showed that Australia
private sector credit rose 0.3 percent on month in January -
exceeding forecasts for 0.2 percent, which would have been
unchanged from the previous month.
On a yearly basis, private sector credit was up 2.5 percent -
again topping expectations for 2.4 percent, which would have been
unchanged from the December reading.
The aussie declined to near an 11-year low of 0.6516 against the
greenback, 6-month low of 70.93 versus the yen and more than a
10-year low of 1.6882 versus the euro, from its prior highs of
0.6585, 72.20 and 1.6704, respectively. The aussie is likely to
test support around 0.63 against the greenback, 70.00 versus the
yen and 1.70 versus the euro.
Pulling back from an early 8-day high of 0.8818 against the
loonie, the aussie edged down to 0.8760. The aussie is poised to
find support around the 0.86 level.
The kiwi dropped to 4-1/2-month lows of 67.84 versus the yen and
1.7647 versus the euro, retreating from its early highs of 69.30
and 1.7407, respectively. Next likely support for the kiwi is seen
around 65.00 versus the yen and 1.80 versus the euro.
The kiwi fell to near a 5-month low of 0.6232 against the
greenback and a 1-week low of 1.0463 against the aussie, from its
early highs of 0.6318 and 1.0403, respectively. If the kiwi falls
further, 0.60 and 1.06 are likely seen as its next support levels
against the greenback and the aussie, respectively.
The yen appreciated to more than a 3-week high of 108.79 against
the greenback, 3-day high of 119.64 versus euro and a 9-day high of
112.48 versus the franc, after falling to 109.68, 120.66 and
113.25, respectively in early deals. The next possible resistance
for the yen is seen around 107.00 against the greenback, 118.00
versus the euro and 111.00 versus the franc.
Looking ahead, German jobless rate for February will be featured
in the European session.
At 8:00 am ET, German flash consumer inflation for February will
be published.
Canada GDP data for December, U.S. wholesale inventories and
personal income and spending data for January and University of
Michigan's final consumer sentiment index for February are slated
for release in the New York session.
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