Antipodean Currencies Fall Amid Risk Aversion

(RTTNews) - Antipodean currencies such as the Australia and New Zealand dollars weakened against their major currencies in the Asian session on Monday amid risk aversion, as some traders looked to cash in and book profits after the recent strength in the markets. Trading volumes may remain light due to the Juneteenth holiday in the U.S.

Oil prices fell over 1 percent in Asian trading after having risen over two percent last week. Brent crude fell 68 cents to trade at $75.93 a barrel, while U.S. West Texas Intermediate (WTI) crude was down 59 cents to $71.19.

Investors focus their attention to China's rate decision and U.S. Federal Reserve Chair Jerome Powell's testimonies for clues on the monetary policy ahead, due later in this week.

The People's Bank of China is widely expected to cut its benchmark loan prime interest rates on Tuesday, following a similar reduction in medium-term policy loans last week.

Investors are also looking to a number of Fed speakers this week, with Powell set to deliver congressional testimonies on Wednesday and Thursday.

In the Asian trading today, the Australian dollar fell to a 10-day low of 1.6003 against the euro, from Friday's closing value of 1.5902. The aussie may test support near the 1.63 area.

Against the U.S., the Canada and the New Zealand dollars, the aussie dropped to 4-day lows of 0.6834, 0.9040 and 1.1008 from last week's closing quotes of 0.6873, 0.9065 and 1.1019, respectively. If the aussie extends its downtrend, it could find support around 0.66 against the greenback, 0.89 against the loonie and 1.06 against the kiwi.

The aussie edged down to 96.73 against the yen, from more than a 9-month high of 97.67. On the downside, 94.00 is seen as the next support level for the aussie.

The NZ dollar fell to a 4-day low of 0.6205 against the U.S. dollar, from Friday's closing value of 0.6231. The next support level for the kiwi is seen around the 0.60 area.

Against the yen and the euro, the kiwi edged down to 87.83 and 1.7621 from last week's closing quotes of 88.41 and 1.7542, respectively. If the kiwi extends its downtrend, it is likely to find support around 84.00 against the yen and against 1.70 against the euro.

Looking ahead, Canada PPI and raw material prices data for May and U.S. NAHB housing market index for June are due to be released in the New York session.