Antipodean Currencies Fall Amid Fed Cautious Outlook

(RTTNews) - The antipodean currencies Australia and the New dollar weakened against their major currencies in the Asian session on Friday, as traders continued to digest the U.S. Fed's interest rate cut by a quarter point and its impact on the markets. Fed officials' forecasts suggest two more rate cuts this year but just one next year, although there were significant differences of opinion about the outlook.

A phone call between U.S. President Donald Trump and Chinese President Xi Jinping scheduled for later in the day to finalize terms of a deal over TikTok's U.S. operations.

Crude oil prices fell after the U.S. Federal Reserve hinted at a slowdown by the American economy. West Texas Intermediate crude for October delivery was down $0.46 or 0.72 percent at $63.59 per barrel.

The NZ dollar traded lower after the weaker than expected trade data in the Asian session.

Data from Statistics New Zealand showed that New Zealand posted a seasonally adjusted merchandise trade deficit of NZ$1.185 billion in August. That was well shy of forecasts for a shortfall of NZ$746 million following the downwardly revised NZ$716 million deficit in July.

Exports were worth NZ$5.94 billion, down from the downwardly revised NZ$6.56 billion in the previous month . Imports were at NZ$7.12 billion, down from the downwardly revised NZ$7.27 billion a month earlier.

In the Asian trading today, the Australian dollar fell to a 9-day low of 0.6587 against the U.S. dollar, from yesterday's closing value of 0.6617. The aussie may test support near the 0.65 region.

Against the euro and the Canadian dollar, the aussie slid to 10-day lows of 1.7844 and 0.9102 from Thursday's closing quotes of 1.7817 and 0.9126, respectively. On the downside, 1.81 against the euro and 0.89 against the loonie are seen as the next support levels for the aussie.

The aussie dropped to 9-day low of 97.25 against the yen, from yesterday's closing value of 97.91. The next possible upside target level for the aussie is seen around the 95.00 region.

The NZ dollar fell to nearly a 16-year low of 2.0096 against the euro, from an early high of 2.0008. The kiwi may test support near the 2.01 region.

Against the U.S. dollar and the yen, the kiwi dropped to a 2-week low of 0.5855 and a 3-week low of 86.49 from early highs of 0.5892 and 87.16, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.56 against the greenback and 85.00 against the yen.

The kiwi edged down to 1.1255 against the Australian dollar, from an early high of 1.1230. The next possible downside target for the kiwi is seen around the 1.13 region.

Looking ahead, Canada retail sales data for July and U.S. Baker Hughes oil rig count data are slated for release in the New York session.