Commodity Currency's Slide As European Shares Subdued Amid Geopolitics

(RTTNews) - The commodity currencies such as Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the European session on Thursday, amid increased risk-off sentiment as investors monitored the latest U.S.-Venezuela developments and awaited upcoming U.S. labor market data for additional clues on the Federal Reserve's trajectory.

The U.S. has seized two Russian-flagged oil tankers and announced plans to control future sales of Venezuelan oil indefinitely.

The investor sentiment declined due to cautious sentiment, which is fueled by growing tensions between China and Japan, a significant trading partner of AUD, NZD and CAD.

Exports of specific rare earth elements and other goods with possible military use to Japan were prohibited by Beijing.

According to a media report, relations have drastically worsened since Japanese Prime Minister Sanae Takaichi stated that a Chinese invasion of Taiwan would endanger Japan's existence and would lead to a military reaction from Tokyo.

Investors are keeping a careful eye on developments related to the ongoing conflict between the US and Venezuela as well as recent statements made by US President Donald Trump over Greenland.

Gold extended losses, after having fallen more than 1 percent in the previous session due to profit taking.

In the European trading today, the Australian dollar fell to 3-day lows of 0.6689 against U.S. dollar and 104.73 against the yen, from early highs of 0.6726 and 105.73, respectively. If the aussie extends its downtrend, it is likely to find support around 0.65 against the greenback and 102.00 against the yen.

Against the euro, the aussie slipped to a 2-day low of 1.7455 from an early high of 1.7360. On the downside, 1.77 is seen as the next support level for the aussie.

The aussie edged down to 0.9284 against the Canadian dollar, from an early high of 0.9323. The next possible downside target for the aussie is seen around the 0.91 region.

The NZ dollar fell to 1-week lows of 0.5740 against the U.S. dollar and 89.97 against the yen, from early highs of 0.5775 and 90.55, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.56 against the greenback and 88.00 against the yen.

Against the euro, the kiwi dropped to a 3-day low of 2.0332 from an early high of 2.0224. On the downside, 2.05 is seen as the next support level for the kiwi.

The kiwi edged down to 1.1657 against the Australian dollar, from an early high of 1.1627. The next support level for the kiwi is seen around the 1.17 region.

The Canadian dollar fell to more than a 1-month low of 1.3888 against the U.S. dollar, from an early high of 1.3857. The loonie may test support around the 1.40 region.

Against the yen and the euro, the loonie slid to a 3-week low of 112.76 and more than a 3-week low of 1.6211 from early highs of 113.23 and 1.6180, respectively. If the loonie extends its downtrend, it is likely to find support around 110.00 against the yen and 1.63 against the euro.

Looking ahead, U.S. trade data for October, U.S. weekly jobless claims data, U.S. consumer inflation expectations for December and U.S. consumer credit change for November are slated for release in the New York session.