Antipodean Currencies Fall Amid Risk Aversion

(RTTNews) - The Australia and the New Zealand dollars weakened against their major currencies in the Asian session on Friday amid risk aversion, as traders react to the hawkish remarks by U.S. Fed Chair Jerome Powell that the central bank "will not hesitate" to resume raising interest rates if it becomes appropriate. The surge in Treasury yields also weighed on the markets.

Participating in a policy panel in Washington, D.C., Powell acknowledged that U.S. inflation has slowed over the past year but pointed out it remains well above the Fed's 2 percent target. He added that the central bank will continue to move carefully and decide on its policy path meeting by meeting.

In the Asian trading now, the Australian dollar fell to 9-day lows of 0.6352 against the U.S. dollar and 96.12 against the yen, from yesterday's closing quotes of 0.6366 and 96.34, respectively. The aussie may test support near 0.62 against the greenback and 94.00 against the yen.

Against the euro and the Canadian dollar, the aussie slid to more than a 2-week low of 1.6791 and nearly a 2-week low of 0.8771 from Thursday's closing quotes of 1.6754 and 0.8789, respectively. If the aussie extends its downtrend, it is likely to find support around 1.69 against the euro and 0.85 against the loonie.

The aussie edged down to 1.0784 against the NZ dollar, from yesterday's closing value of 1.0801. On the downside, 1.06 is seen as the next support level for the aussie.

The NZ dollar fell to a 1-week low of 0.5886 against the U.S. dollar and a 3-day low of 89.09 against the yen, from yesterday's closing quotes of 0.5894 and 89.19, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.57 against the greenback and 87.00 against the yen.

Against the euro, the kiwi edged down to 1.8119 from Thursday's closing value of 1.8101. The kiwi is likely to find its next support level around the 1.83 region.

Looking ahead, U.S. University of Michigan consumer sentiment for November and U.S. Baker Hughes oil rig count data are due to be released in the New York session.

At 7:30 am ET, Federal Reserve Bank of Dallas President Lorie Logan is expected to speak before the European Central Bank Conference on Money Markets 2023, in Frankfurt, Germany.

At the same time, ECB President Christine Lagarde is set to speak at the Financial Times' Global Boardroom 2023 in London, UK.

At 9:00 am ET, Federal Reserve Bank of Atlanta President Raphael Bostic will deliver a speech on "Economic Mobility and Challenges in the Community" before the Mobile Chamber of Commerce, in Atlanta, U.S.

At 10:20 am ET, ECB policymaker and Bundesbank president Joachim Nagel will deliver a speech about financial policy at a time of high inflation, in Frankfurt, Germany.