CANBERA (dpa-AFX) - The Antipodean currencies such as the Australia and the New Zealand dollars weakened against their major currencies in the Asian session on Thursday amid risk aversion, as concerns over a global trade war reignited after US President Donald Trump's latest tariff announcements. He newly indicated plans for 25 percent 'reciprocal' tariffs on European autos and other goods.
During the first official Cabinet meeting of his new administration, Trump reiterated he is 'not stopping' previously delayed tariffs on Canada and Mexico. While a 30-day pause on those tariffs is set to expire on March 4, Trump indicated the tariffs would take effect on April 2, the same day he purportedly plans to announce reciprocal tariffs on other U.S. trade partners.
Slightly easing worries about U.S.-Ukraine tensions after the two nations agreed on a minerals deal, helped keep investor sentiment a bit positive.
Crude oil prices drifted lower amid concerns about the outlook for demand as the Trump administration's tariff policies are expected to slow global economic growth. West Texas Intermediate Crude oil futures for April settled lower by $0.31 at $68.62 a barrel.
In economic news, the total value of new capital expenditure in Australia was down a seasonally adjusted 0.2 percent on quarter in the fourth quarter of 2024, the Australian Bureau of Statistics said on Thursday - coming in at A$43.961 billion. That missed forecasts for an increase of 0.6 percent following the 1.1 percent gain in the previous three months. On a yearly basis, capex was up 0.6 percent.
In the Asian trading today, the Australian dollar fell to nearly a 6-month low of 93.71 against the yen, from yesterday's closing value of 93.93. The aussie may test support near the 91.00 region.
Against the U.S. and the Canadian dollars, the aussie slipped to a 2-week low of 0.6285 and a 2-day low of 0.9024 from Wednesday's closing quotes of 0.6309 and 0.9046, respectively. If the aussie extends its downtrend, it is likely to find support around 0.60 against the greenback and 0.89 against the loonie.
The aussie edged down to 1.6645 against the euro, from yesterday's closing value of 1.6624. The aussie is likely to find support around the 1.67 region.
The NZ dollar fell to nearly a 7-month low of 84.61 against the yen, from yesterday's closing value of 84.83. The next possible downside target for the kiwi is seen around the 83.00 region.
Against the U.S. dollar and the euro, the kiwi dropped to near 2-week lows of 0.5674 and 1.8442 from Wednesday's closing quotes of 0.5699 and 1.8406, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.55 against the greenback and 1.86 against the euro.
The kiwi edged down to 1.1085 against the Australian dollar, from yesterday's closing value of 1.1072. On the downside, 1.11 is seen as the next support level for the kiwi.
Looking ahead, the European Commission publishes economic sentiment survey data for February is due to be released at 5:00 am ET. The economic confidence index is forecast to rise to 96.0 from 95.2 in January.
At 7:30 am ET, the European Central Bank is slated to release account of the governing council meeting held on January 29 and 30.
In the New York session, Canada current account data for the fourth quarter, U.S. durable goods orders for January, GDP data for the fourth quarter, weekly jobless claims data, core PCE prices for the fourth quarter, pending home sales data for January and U.S. Kansas Fed manufacturing index for February are slated for release.
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