Australian, And New Zealand Dollars Decline Amid Rising Risk Aversion
September 29 2019 - 11:39PM
RTTF2
The Australian and New Zealand dollars declined against their
major counterparts in the pre-European session on Monday amid
rising risk aversion, as most Asian shares fell following the weak
cues from Wall Street Friday on news the White House is considering
curbs on U.S. investments in China.
A report from Bloomberg News on Friday said Trump administration
officials are discussing ways to limit U.S. investors' portfolio
flows into China. A source family with the matter confirmed to CNBC
that the White House is weighing some curbs on U.S. investments in
China, but noted the discussions are in the preliminary stages and
nothing has been decided.
Investors also digested data that showed Chinese manufacturing
activity in September came in above expectations.
As the Communist Party of China prepares to celebrate the 70th
anniversary of its rule, pro-democracy protesters and police
engaged in running street battles in a march billed as a rally
against global totalitarianism in Hong Kong on Sunday.
Protestors are hoping to disrupt Beijing's celebrations on
Tuesday with further mass rallies.
U.S.-China trade talks will resume on October 10th in
Washington, with Chinese Vice Premier Liu He likely to represent
the delegation from Beijing at the meetings.
The aussie fell to 0.6746 against the greenback, 72.70 against
the yen and 1.6212 against the euro, from its early highs of
0.6771, 73.10 and 1.6151, respectively. The next possible support
for the aussie is seen around 0.64 against the greenback, 70.00
against the yen and 1.635 against the euro.
The aussie declined to near a 4-week low of 0.8930 against the
loonie, from a high of 0.8960 hit at 9:45 pm ET. On the downside,
0.88 is possibly seen as the next support level for the aussie.
The kiwi slipped to 1-week lows of 67.41 against the yen, 1.7506
against the euro and 1.0798 against the aussie, off its previous
highs of 67.96, 1.7381 and 1.0740, respectively. The currency is
likely to locate support around 65.00 against the yen, 1.78 against
the euro and 1.09 against the aussie.
The NZ currency depreciated to a 4-year low of 0.6252 against
the greenback, from a high of 0.6295 seen at 6:00 pm ET. If the
kiwi slides further, it may find support around the 0.60 level.
Looking ahead, German jobless rate for September, U.K. mortgage
approvals for August and GDP data for the second quarter and
Eurozone jobless rate for August are due in the European
session.
At 8:00 am ET, German flash consumer inflation for September is
set for release.
Canada industrial product price index for August will be out at
8:30 am ET.
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