The Australian and New Zealand dollars held onto hefty gains made against a bleeding euro on Monday amid uncertainties over the Greek bailout package, and paused on the greenback ahead of key US jobs data. The euro tumbled overnight by more than one percent on the Aussie to a one-month trough of A$1.3254, before trimming some of its losses. It last stood at A$1.3315.
The single currency has fallen nearly 3 percent against the Aussie this week and its outlook remained weak, especially if the European Central Bank softens its hawkish stance at its policy meeting next week. Todd Elmer, head of G10 FX strategy at Citi in Singapore, expects the euro to weaken further as Europe's problems won't be fixed soon.
Immediate support is seen at A$1.3200 and a break below that could see a retest of the major A$1.2910-20 all time lows, according to traders. Initial resistance is found at A$1.3400. The New Zealand dollar also held firm against the euro, which hit a one-month trough around NZ$1.6717. The common currency last stood at NZ$1.6734, having lost some 3 percent this week on the kiwi.
The Aussie paused at $1.0707, having risen to a one-month high of $1.0765 in offshore trade. It gained 1.3 percent this week. Resistance is seen around $1.0740 with talk of very good selling interest ahead of a $1.0800 option barrier, according to traders. Support is found at $1.0600. Soggy Asian equities, with Korea, China, Japan and Australian stocks slipping one percent, weighed on commodity currencies.
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