logo
Plus   Neg
Share
Email

Australian, NZ Dollars Weaken On China Credit Fears

The Australian and NZ dollars fell against their major counterparts in the Asian session on Tuesday, as risk sentiment dampened on China credit concerns.

The People's Bank of China has reportedly asked the country's major banks to curtail loan growth for the rest of this year, Bloomberg reported.

The banks were told to keep loan growth stable and reasonable amid fears about bubbles in the property and financial markets.

Asian stock markets are mostly lower, as worries about rising coronavirus cases and extension of lockdown restrictions offset optimism over strong U.S. economic data released overnight.

Australia's central bank left its current policy settings unchanged, as widely expected.

The policy board of the Reserve Bank of Australia headed by Governor Philip Lowe decided to retain its cash rate at a record low of 0.10 percent. The central bank retained the target yield on the 3-year Australian government bond at around 0.1 percent and also maintained the parameters of the Term Funding Facility and the government bond purchase programme.

The aussie dropped to 0.7631 against the greenback and 84.17 against the yen, after rising to a 1-week high of 0.7661 and a 4-day high of 84.46, respectively in early deals. The next possible support for the aussie is seen around 0.75 against the greenback and 82.00 against the yen.

The aussie edged down to 1.5464 against the euro and 0.9571 against the loonie, coming off from its early highs of 1.5424 and 0.9591, respectively. The aussie is poised to find support around 1.58 against the euro and 0.94 against the loonie.

The kiwi slipped to 0.7043 against the greenback, 77.68 against the yen and 1.6756 against the euro, down from its prior highs of 0.7069, 77.94 and 1.6713, respectively. If the kiwi falls further, 0.68, 76.00 and 1.70 are likely seen as its next support levels against the greenback, the yen and the euro, respectively.

The kiwi ticked down to 1.0842 against the aussie, compared to its previous high of 1.0824. On the downside, 1.10 is possibly seen as its next support level.

Looking ahead, Eurozone Sentix investor sentiment index for April and jobless rate for February are due in the European session.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT