Australian Dollar Lower Amid Drop In European Shares

(RTTNews) - The Australian dollar fell against its major counterparts in the European session on Tuesday amid risk aversion, as investors fretted about the outlook for economic and corporate earnings growth.

Amid increasing anxiety about high interest rates and tightening economic conditions, investors awaited earnings from tech giants Microsoft, Amazon, Alphabet and Meta Platforms for directional cues.

Traders also awaited a slew of upcoming central bank meetings, most notably the Fed, ECB and BOE meetings due over the next two weeks.

On the economic front, U.S. reports on consumer confidence, new home sales, durable goods orders, first quarter GDP and personal income and spending are likely to influence trading in the coming days, heading into the Fed meeting next week.

The report on personal income and spending includes a reading on inflation said to be preferred by the Federal Reserve.

The aussie depreciated to 1.6579 against the euro, its lowest level since November 2, 2020. If the currency drops further, it may find support around the 1.68 area.

The aussie dropped to near 2-week lows of 89.16 against the yen and 0.6665 against the greenback, from an early high of 90.02 and a 4-day high of 0.6705, respectively. The aussie is seen finding support around 86.00 against the yen and 0.64 against the greenback.

The aussie weakened to an 8-day low of 1.0803 against the kiwi and a 4-day low of 0.9036 against the loonie, off an early high of 1.0857 and a 4-day high of 0.9073, respectively. The next possible support for the aussie is seen around 1.06 against the kiwi and 0.89 against the loonie.

Looking ahead, U.S. consumer confidence index for April, new home sales for March and FHFA's house price index and S&P/Case-Shiller home price index for February will be released in the New York session.