Antipodean Currency's Slide Amid Risk-off Mood, U.S Dollar Rises

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars weakened against their major currencies in the Asian session on Friday as Asian stock markets traded lower, amid concerns over the re-escalation of the Middle East conflict after ship attacks and seizures near the Strait of Hormuz.

Traders are now anticipating China's active role to resolve the crisis and hasten up the reopening of the Strait of Hormuz in the backdrop of a U.S.-China summit. Both countries agreed the Strait must be free for all nations.

Regarding Trump's second and last day of meetings with Chinese President Xi Jinping in Beijing, traders are waiting for further information.

The escalating geopolitical tensions and higher energy prices raised concerns over potential supply disruptions, higher inflationary pressures, and risks to global growth.

Meanwhile, traders also expect a Federal Reserve (Fed) rate hike this year due to rising oil prices and increased inflationary pressures, leading to the upturn of USD. In the Asian trading today, the Australian dollar fell to 3-day lows of 1.6248 against the euro and 113.65 against the yen, from yesterday's closing quotes of 1.6166 and 114.26, respectively. If the aussie extends its downtrend, it is likely to find support around 1.66 against the euro and 112.00 against the yen.

Against the U.S. and the Canadian dollars, the aussie slid to nearly a 2-week low of 0.7167 and an 8-day low of 0.9859, from Thursday's closing quotes of 0.7214 and 0.9901, respectively. The aussie may test support near 0.70 against the greenback and 0.97 against the loonie.

The NZ dollar fell to nearly a 2-week low of 0.5864 against the U.S. dollar, from Thursday's closing value of 0.5903. On the downside, 0.57 is seen as the next support level for the kiwi.

Against the yen and the euro, the kiwi slipped to 4-day lows of 92.99 and 1.9856 from yesterday's closing quotes of 93.49 and 1.9757, respectively. If the kiwi extends its downtrend, it is likely to find support around 91.00 against the yen and 2.02 against the euro.

The kiwi edged down to 1.2233 against the Australian dollar, from yesterday's closing value of 1.2222. The next possible downside target for the kiwi is seen around the 1.23 region.

The U.S. dollar rose to near 1-1/2-month highs of 1.1643 against the euro and 1.3352 against the pound, from yesterday's closing quotes of 1.1662 and 1.3390, respectively. If the greenback extends its uptrend, it is likely to find resistance around 1.15 against the euro and 1.31 against the pound.

Against the yen and the Swiss franc, the franc advanced to 158.59 and 0.7860 from Thursday's closing quotes of 158.38 and 0.7843, respectively. The greenback is likely to find resistance around 160.00 against the yen and 0.79 against the franc.

The greenback climbed to a 1-month high of 1.3758 against the Canadian dollar, from yesterday's closing value of 1.3724. The greenback is likely to find resistance around the 1.39 region.

Looking ahead, Canada housing starts for April and manufacturing sales data for March, U.S. NY Empire State manufacturing index for May, U.S. industrial and manufacturing productions data for April and U.S. Baker Hughes oil rig count data are slated for release in the New York session.