Tuesday, the Australian and the New Zealand dollars plummeted against their major counterparts on the back of weak Asian stocks as investors shrugged off upbeat U.S. home sales data and took profits on recent rallies.
Also, investors in Asia grew more cautious ahead of a string of U.S. economic data this week and the start of the Christmas shopping season on Friday after the U.S. Thanksgiving holiday, which will be a key test of consumer confidence.
Australia's benchmark S&P/ASX200 Index declined 32.00 points, or 0.68% to close at 4,685, while the All-Ordinaries Index ended at 4,708, representing a loss of 31.00 points, or 0.65%.
New Zealand's NZX-50 index lost 5.36 points 0.17% at 3,107.61. Elsewhere, South Korea's Kospi declined 0.8%, China's Shangai Composite index dropped 3.45% and Hong Kong's Hang Seng slipped 1.5%.
Oil hovered below $78 a barrel in Asia amid mixed signs about crude demand. Benchmark crude for January delivery was up 10 cents to $77.66 a barrel. The contract rose 9 cents to settle at $77.56 on Monday.
The Aussie, which closed yesterday's trading at 0.9759 against the Canadian dollar slipped to a 4-day low of 0.9717 in early deals on Tuesday. The next downside target level for the aussie-loonie pair is seen at 0.956.
In economic news from Australia, the Conference Board's Leading Economic Index for Australia increased by 0.3 percent in September. The Leading Index, which is a barometer of economic activity in the coming six months, increased for the fourth straight month.
The private sector group also said its Coincident index advanced 0.1 percent for the month.
During early deals on Tuesday, the Australian dollar declined to a 4-day low of 1.6315 against the euro. This may be compared to yesterday's close of 1.620. On the downside, 1.636 is seen as the next target level for the aussie.
The German economy expanded 0.7% in the third quarter from the previous quarter, following the 0.4% increase seen in the second quarter, a detailed report from the Federal Statistical Office showed today.
The price-adjusted GDP was markedly down again on a year earlier. In the third quarter, GDP declined 4.7% compared to a 7% fall in the second quarter. The calendar-adjusted GDP was down 4.8%. The statistical office confirmed the preliminary estimate released on November 13.
The Aussie plunged to 0.9134 against the U.S. currency and 81.03 against the yen in early trading on Tuesday. If the aussie weakens further, it may target 0.906 against the greenback and 80.7 against the yen. The aussie-greenback and the aussie-yen pairs were 0.9241 and 82.23, respectively at yesterday's close.
At 2:25 am ET Tuesday, the New Zealand dollar touched a new multi-week low of 2.0628 against the euro. The next target level for the kiwi is seen at 2.071, if it slides further. The euro-kiwi pair was worth 2.0422 at Monday's close.
In early trading on Tuesday, the New Zealand dollar dropped to 0.7225 against the US currency and 64.10 against the yen. If the kiwi falls further, it may target 0.720 against the greenback and 64.0 against the yen. The kiwi-greenback pair closed deals at 0.7326 and the kiwi-yen pair at 65.20 on Monday.
The Bank of Japan raised its economic assessment for the third straight month, the latest Monthly Report of Recent Economic and Financial Developments revealed today.
The BoJ said Japan's economy is picking up mainly due to various policy measures taken at home and abroad, although the momentum of self-sustaining recovery in domestic private demand remains weak. Last month, the central bank said Japan's economy has started to pick up.
The NZ dollar fell to 1.2668 against the Aussie during early Asian deals on Tuesday at 8:55 pm ET. Although the kiwi recovered slightly thereafter, it pulled back again in the latter part of the session and the pair is now worth 1.2665. On the downside, 1.270 is seen as the next target level for the kiwi. At yesterday's close, the aussie-kiwi pair was quoted at 1.2627.
The German IFO business climate report for November and the Euro-zone September industrial new orders are expected to influence trading in the upcoming hours.
From the U.S., the Bureau of Economic Analysis is due to release its third quarter GDP report at 8:30 am ET. The report is likely to show that the U.S. economy expanded at a 2.9% rate in the quarter.
Advance estimates revealed that the U.S. economy expanded at a 3.5% rate in the third quarter compared to a 0.7% contraction in the second quarter. Economists had expected a more modest 3.2% GDP growth.
At 9:00 am ET, the S&P/Case-Shiller home price index is scheduled to be released. Economists expect a 9.05% year-over-year decline in the 20-city composite house price index for September.
The Conference Board is scheduled to release its consumer confidence report for November at about 10 am ET. The report is expected to show that the consumer confidence index edged down to 47.5 in November.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.