Antipodean Currencies Slide As European Shares Traded Lower

(RTTNews) - The Australia and the New Zealand dollars weakened against their major currencies in the Asian session on Friday, as European stocks traded lower, with trading volumes likely to remain thin amid the Independence Day holiday in the United States.

U.S. President Donald Trump's approach to tariffs remains a concern as the July 9 deadline approaches.

Trump said late Thursday that his administration will start sending out letters to different countries starting Friday, telling them what import tax (tariff) rates they will have to pay to sell goods in the U.S.

Separately, U.S. Treasury Secretary Scott Bessent has said the U.S. and India are nearing a deal but talks with Japan and South Korea - have been stalled for weeks.

Closer home, the EU is reportedly pushing for an "agreement in principle" ahead of July 9 but Brussels is bracing for any outcome, including a return to tit-for-tat tariff escalation, media reports suggest.

U.S. fiscal worries also remain on investors' radar following the passage of Trump's 'big, beautiful' tax and spending bill, which would add trillions to the national debt and deepening fiscal imbalances.

Data from the Australian Bureau of Statistics showed that Australia's household spending rebounded in May driven by spending on discretionary goods and services. Household spending grew 0.9 percent month-on-month in May, following a flat result in April and a 0.1 percent drop in March.

On a yearly basis, household spending increased 4.2 percent in May after rising 3.8 percent in April. A similar faster growth was last seen in December.

In the Asian trading today, the Australian dollar fell to 94.65 against the yen and 1.7958 against the euro, from yesterday's closing quotes of 95.17 and 1.7896, respectively. If the aussie extends its downtrend, it is likely to find support around 92.00 against the yen and 1.80 against the euro.

Against the U.S. and the Canadian dollars, the aussie slid to 0.6556 and 0.8904 from Thursday's closing quotes of 0.6577 and 0.8927, respectively. The aussie may test support near 0.63 against the greenback and 1.07 against the loonie.

The aussie edged down to 1.0812 against the NZ dollar, from an early high of 1.0828. On the downside, 0.58 is seen as the next support level for the aussie.

The NZ dollar fell to 0.6060 against the U.S. dollar and 87.49 against the yen, from yesterday's closing quotes of 0.6079 and 87.97, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.58 against the greenback and 85.00 against the yen.

Against the euro, the kiwi dropped to 1.9432 from an early 2-day high of 1.9349. The next possible downside target for the kiwi is seen around the 1.95 region.

Looking ahead, Eurozone PPI for May is slated for release at 5:00 am ET in the European session.

In the New York session, Canada S&P Global PMI for June is set to be published.