Antipodean Currencies Slide Amid Risk-off Mood; Safe-haven Swiss Franc Rises

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars weakened against their major currencies in the Asian session on Friday amid increased risk-off mood by the investors, with some of the major markets being closed, as traders continue to assess the impact of the steeper-than-expected reciprocal tariffs imposed by U.S. President Donald Trump on U.S. trade partners.

Trump's "reciprocal tariff" plan calls for a baseline 10 percent tariff to be imposed on all U.S. imports except those compliant with the United States-Mexico-Canada Agreement. Certain countries deemed the "worst offenders" will face much higher tariffs, with countries like Cambodia, Laos, Madagascar and Vietnam set to be charged nearly 50 percent.

China, which will face a 54 percent tariff rate when the new levies are combined with existing duties, has vowed to take countermeasures. Canada and the European Union are also preparing countermeasures. The trade war marks one of the boldest protectionist pushes in recent history that could fuel inflation and damage the global economy.

Weakness across most sectors led by energy and technology stocks, also led to the downturn of AUD and NZD.

Crude oil prices pulled back sharply after the U.S. implemented its tariffs, while additional selling pressure came after OPEC said it would speed up previously announced increases in output. Crude for May delivery plummeted $4.76 or 6.6 percent to $66.95 a barrel.

In the Asian trading today, the Australian dollar fell to a 5-year low of 1.7780 against the euro, a 1-year low of 0.8789 against the Canadian dollar and an 8-month low of 90.85 against the yen, from yesterday's closing quotes of 1.7461, 0.8909 and 95.52, respectively. If the aussie extends its downtrend, it is likely to find support around 1.79 against the euro, 0.86 against the loonie and 89.00 against the yen.

Against the U.S. and the New Zealand dollars, the aussie edged down to 0.6237 and 1.0906 from Thursday's closing quotes of 0.6325 and 1.0903, respectively. The aussie may test support near 0.60 against the greenback and 1.07 against the kiwi.

The NZ dollar fell to more than a 5-year low of 1.9400 against the euro and a 1-month low of 83.27 against the yen, from Thursday's closing quotes of 1.9085 and 84.65, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.95 against the euro and 82.00 against the yen.

Against the U.S. dollar, the kiwi edged down to 0.5715 from yesterday's closing value of 0.5788. The next possible downside target for the kiwi is seen around the 0.55 region.

Meanwhile, the safe-haven Swiss franc strengthened against other major currencies in the Asian session amid increased risk-off mood by the investors.

The Swiss franc rose to a 1-month high of 0.9458 against the euro and nearly a 2-1/2-month high of 1.1172 against the pound, from Thursday's closing quotes of 0.9490 and 1.1246, respectively. If the franc extends its uptrend, it is likely to find resistance around 0.93 against the euro and 1.10 against the pound.

Against the U.S. dollar and the yen, the franc advanced to a 6-month high of 0.8529 and a 1-week high of 170.87 from yesterday's closing quotes of 0.8593 and 170.22, respectively. The franc is likely to find resistance around 0.83 against the greenback and 173.00 against the yen.

Looking ahead, S&P Global Germany and U.K. construction PMI data for March are due to be released in the European session.

In the New York session, Canada and U.S. jobs data for March and U.S. Baker Hughes oil rig count data are slated for release.