Antipodean Currencies Fall Amid Risk-off Mood

(RTTNews) - The antipodean currencies such as Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the Asian session on Monday, as Asian stock markets traded lower, as traders remain concerned about surging crude oil prices and rising global bond yields. They also remain concerned if the fragile U.S.-Iran truce would hold while the U.S and Iran continue talks to end the war in the Middle East even as both factions rejected each other's latest peace proposals.

U.S. President Donald Trump on Sunday warned that "the clock is ticking" for Iran and they better get moving, FAST, or there won't be anything left of them.

According to Iran's Fars News Agency, the U.S. has demanded for the permanent cessation of uranium enrichment and the handover of its enriched uranium stockpile. The U.S. also refused to pay any war compensation and wants only one operating nuclear facility to remain in the Islamic Republic.

Crude oil prices surged after the U.S.-China summit ended with no announcement of Chinese intervention to end the gulf war, leaving the Strait of Hormuz blockade in place. West Texas Intermediate crude for June was up $4.18 or 4.13 percent at $105.35 per barrel.

In the Asian trading now, the Australian dollar fell to 1-week lows of 113.12 against the yen and 1.6308 against the euro, from last week's closing quotes of 113.53 and 1.6257, respectively. If the aussie extends its downtrend, it is likely to find support around 111.00 against the yen and 1.65 against the euro.

Against the U.S. and the Canadian dollars, the aussie dropped to nearly a 3-week low of 0.7119 and nearly a 2-week low of 0.9797 from Friday's closing quotes of 0.7151 and 0.9832, respectively. The aussie may test support near 0.70 against the greenback and 0.96 against the loonie.

The aussie edged down to 1.2213 against the NZ dollar, from last week's closing value of 1.2247. On the downside, 1.21 is seen as the next support level for the aussie. The NZ dollar fell to nearly a 3-week low of 0.5823 against the U.S. dollar and nearly a 2-week low of 1.9937 against the euro, from last week's closing quotes of 0.5839 and 1.9910, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.57 against the greenback and 2.01 against the euro.

Against the yen, the kiwi edged down to 92.56 from Friday's closing value of 92.70. On the downside, 91.00 is seen as the next support level for the kiwi.

Looking ahead, U.S. NAHB housing market index for May is due to be released in the New York session.