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FX.co ★ Australian, NZ Dollars Fall Amid Risk Aversion

Australian, NZ Dollars Fall Amid Risk Aversion

The Australian and NZ dollars depreciated in the European session on Monday, as surging COVID-19 cases across Asia and associated restrictions dampened investor sentiment at the start of trading week.

Australia's largest city, Sydney, moved to a two-week lockdown on Saturday due to concerns over the Delta variant virus cases.

Malaysia will extend a lockdown that was set to expire today, while Thailand implemented tough lockdown measures in the capital Bangkok and other provinces as the current curbs failed to prevent the spread of the coronavirus.

In the U.K, coronavirus cases involving the Delta variant are rising, prompting European nations such as Spain and Portugal to impose new restrictions on travelers.

Investors await more clues about the outlook for monetary policy from speeches from Fed officials, as well as key data on U.S. employment.

The kiwi dipped to 5-day lows of 77.99 versus the yen and 0.7033 against the greenback, off its prior highs of 78.42 and 0.7086, respectively. Next likely support for the kiwi is seen around 76.00 against the yen and 0.68 against the greenback.

The kiwi depreciated to a 4-day low of 1.0751 against the aussie and a 5-day low of 1.6943 versus the euro, reversing from its early more than a 3-week high of 1.0713 and near a 3-week high of 1.6847, respectively. If the kiwi slides further, it may find support around 1.09 against the aussie and 1.71 against the euro.

The aussie was lower against the yen and the greenback, touching 5-day lows of 83.82 and 0.7557, respectively. This followed the currency's early rises to 84.16 against the yen and 0.7602 against the greenback. On the downside, 82 and 0.72 are possibly seen as its next support levels against the yen and the greenback, respectively.

The aussie weakened to a 5-day low of 0.9305 against the loonie and a 4-day low of 1.5763 against the euro, down from its previous high of 0.9347 and near a 2-week high of 1.5700, respectively. The aussie is likely to test support around 0.92 against the loonie and 1.62 against the euro.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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