Antipodean Currencies Fall Amid Risk-off Mood

(RTTNews) - The antipodean currencies such as the Australia and New Zealand dollars weakened against other major currencies in the Asian session on Monday, as Asian stock markets traded lower hurt by tumbling technology stocks which mirrored their peers on tech-heavy Nasdaq amid concerns about valuations. Additional weakness came from escalating Middle East conflict after reports that Iran launched missiles at Israel, raising doubts over the durability of the already fragile US-Iran ceasefire.

The Iranian attack followed Israeli strikes in Beirut, with Iran warning of further attacks if Israel expands its military operations in Lebanon or retaliates against Iran's actions.

Meanwhile, US President Donald Trump said the US was close to reaching a final agreement with Iran but cautioned that escalating hostilities could jeopardize ongoing diplomatic efforts. Trump urged Iran to resume talks and reportedly sought to prevent an Israeli retaliation.

The escalation increases the risk of broader military conflict, which could further disrupt Middle Eastern shipping routes and energy flows.

In the Asian trading today, the Australian dollar fell to more than a 1-month low of 112.63 against the yen and nearly a 3-week low of 1.6377 against the euro, from last week's closing quotes of 112.97 and 1.6349, respectively. If the aussie extends its downtrend, it is likely to find support around 110.00 against the yen and 1.64 against the euro.

Against the U.S. and the Canadian dollars, the aussie slipped to nearly a 2-month low of 0.7035 and nearly a 3-week low of 0.9811 from Friday's closing quotes of 0.7047 and 0.9811, respectively. The next possible downside target for the aussie is seen around 0.69 against the greenback and 0.96 against the loonie.

The aussie edged down to 1.2146 against the NZ dollar, from Friday's closing value of 1.2157. On the downside, 1.19 is seen around the 1.19 region.

The NZ dollar fell to nearly a 3-week low of 92.73 against the yen, from Friday's closing value of 92.93. The kiwi is likely to find support around the 90.00 region.

Against the U.S. dollar and the euro, the kiwi edged down to 0.5789 and 1.9899 from last week's closing quotes of 0.5797 and 1.9876, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.56 against the greenback and 2.00 against the euro.

Looking ahead, U.S. Consumer Board's employment trends index for May and U.S. NY Fed 1-Year consumer inflation expectations for May are slated for release in the New York session.