Australian And New Zealand Dollars Slide On Europe Woes
00:16, 23rd February 2012
(RTTNews) - The Australian and New Zealand dollars declined against other major currencies in early Asian trading on Thursday amid renewed concerns over the lingering debt situation in Europe.
Uncertainty over the implementation of Greece's debt deal dampened risk sentiment after Fitch Ratings on Wednesday downgraded Greece's credit rating to C from CCC after the confirmation of the country's second bailout package.
The Aussie also slipped after reports suggested that the Australian Prime Minister Julia Gillard called a leadership ballot in an effort to end months of building tension within the Labor government over who will lead it into the 2013 election. The call followed a week of rising tension that culminated Wednesday in the resignation of Foreign Minister Kevin Rudd.
The Australian dollar fell to a fresh 3-week low of 1.0600 against the U.S. dollar, compared to yesterday's close of 1.0639. On the downside, 1.055 is seen as the next target level for the Australian currency.
The Australian dollar slipped to 85.06 against the yen and 1.0613 against the Canadian dollar. The next downside target level for the aussie is seen at 84.8 against the yen and 1.060 against the loonie. The aussie-yen and the aussie-loonie pairs were worth 85.39 and 1.0635, respectively at yesterday's close.
Against the euro, the Australian dollar declined to a fresh 1- 1/2 -month low of 1.2491. If the aussie weakens further, it may likely target the 1.260 level. At yesterday's close, the euro-aussie pair was quoted at 1.2460.
The New Zealand dollar also edged down, hitting a 6-day low of 1.2850 against the Australian dollar and near a 2-week low of 1.6024 against the euro. The next downside target level for the kiwi is seen at 1.294 against the aussie and 1.610 against the euro. The kiwi ended Wednesday's trading at 1.2836 against the aussie and 1.5988 against the euro.
The New Zealand dollar dipped to as low as 66.34 against the yen, compared to yesterday's close of 66.55. The near term support level for the kiwi-yen pair is seen at 66.0.
Against the U.S. dollar, the New Zealand dollar declined to 0.8266. If the kiwi slides further, it may likely target the 0.825 level. At yesterday's close, the kiwi-greenback pair was quoted at 0.8292.
Investors focus on the European session, in which German IFO business climate index for February is due for release.
The U.S. house price index for December and the weekly jobless claims for the week ended February 18 are expected in the New York morning session.
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