Antipodean Currencies Slide Amid Risk-off Mood

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars weakened against their major counterparts in the Asian session on Monday, as Asian stock markets traded lower as the failure of peace negotiations between the warring factions in the Middle East over the weekend raised concerns about whether the fragile ceasefire will hold.

Talks failed over Iran's refusal to halt efforts to develop nuclear weapons, while Tehran reportedly demanded control of the Strait of Hormuz, war reparations, and the release of frozen assets.

Following the failed talks in Islamabad, U.S. President Donald Trump announced that the U.S. Navy will block 'all maritime traffic entering and exiting Iranian ports' starting on Monday. "It's going to be all or none and that's the way it is," the president said.

Iran's navy chief asserted that the country is prepared to counter any military action and will not be intimidated by what it called "imaginary plans."

Trump is also reportedly considering renewed strikes on Iran, raising concerns over a broader escalation in the global energy crisis.

Crude oil prices slumped despite persistent tensions surrounding the Strait of Hormuz. West Texas Intermediate crude for May delivery was down $1.15 or 1.18 percent at $96.72 per barrel.

In economic news, data from BusinessNZ showed that the services sector in New Zealand continued to contract in March, and at a faster rate, with a Performance of Services Index score of 46.0.

That's down from the downwardly revised 47.6 in February (originally 48.0) and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.

In the Asian trading today, the Australian dollar fell to 5-day lows of 0.7017 against the U.S. dollar and 1.6638 against the euro, from last week's closing quotes of 0.7062 and 1.6596, respectively. If the aussie extends its downtrend, it is likely to find support around 0.71 against the greenback and 1.67 against the euro.

Against the yen and the Canadian dollar, the aussie slid to 4-day lows of 112.07 and 0.9737 from Friday's closing quotes of 112.50 and 0.9775, respectively. On the downside, 110.00 against the yen and 0.95 against the loonie are seen as the next support levels for the aussie.

The aussie edged down to 1.2081 against the NZ dollar, from last week's closing value of 1.2101. The next possible downside target for the aussie is seen around the 1.19 region.

The NZ dollar fell to 5-day lows of 0.5801 against the U.S. dollar and 2.0121 against the euro, from last week's closing quotes of 0.5836 and 2.0082, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.56 against the greenback and 2.03 against the euro.

Against the yen, the kiwi slid to a 4-day low of 92.65 from Friday's closing value of 92.97. The kiwi may test support around the 91.00 region.

Looking ahead, Canada building permits for February and U.S. existing home sales for March are slated for release in the New York session.