2024.01.0305:57:00UTC+00Antipodean Currencies Slide Amid Risk Aversion

The Antipodean currencies such as the Australia and the New Zealand dollars weakened against their major currencies in the Asian session on Wednesday amid risk aversion, following the mostly negative cues from global markets overnight, as major currencies in the region were hit by a stronger U.S. dollar. Technology stocks are bearing the brunt after Barclays cut the iPhone maker Apple's rating to underweight and trimmed its price target.

Traders now look ahead to a busy week of economic data, including key U.S. jobs data and the latest U.S. Fed monetary policy meeting minutes, for important clues to the economic and interest rate outlook.

In the Asian trading today, the Australian dollar fell to nearly a 2-week low of 0.6751 against the U.S. dollar and a 5-day low of 0.9000 against the Canadian dollar, from recent highs of 0.6771 and 0.9020, respectively. If the aussie extends its downtrend, it is likely to find support around 0.64 against the greenback and 0.88 against the loonie.

Against the yen, the euro and the NZ dollar, the aussie slipped to 95.88, 1.6220 and 1.0786 from yesterday's closing quotes of 95.98, 1.6176 and 1.0806, respectively. On the downside, 93.00 against the yen, 1.64 against the euro and 1.06 against the kiwi are seen as the next support levels for the aussie.

The NZ dollar fell to nearly a 2-week low of 0.6245 against the U.S. dollar and a 5-day low of 1.7532 against the euro, from yesterday's closing quotes of 0.6252 and 1.7487, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.59 against the greenback and 1.76 against the euro.

Against the yen, the kiwi edged down to 88.72 from a recent high of 89.13. The kiwi may test support near the 87.00 region.

Looking ahead, Switzerland manufacturing PMI for December and German unemployment rate for December are due to be released in the European session.

In the New York session, U.S. MBA mortgage approvals data and U.S. ISM manufacturing PMI for December are slated for release.

At 2:00 pm ET, U.S. Federal Reserve is scheduled to release FOMC meeting minutes of its December meeting.