Antipodean currencies such as the Australian and the New Zealand dollars weakened against their major currencies in the Asian session on Monday, as investor sentiment dampened after French President Emmanuel Macron and his party took a commanding lead in the first round of France’s legislative elections.
The U.K. general election result created uncertainty over the policy platform, political cohesion and longevity of the next U.K. government, Fitch Ratings said. This will have implications for Brexit as well as potentially fiscal policy, it added.
Meanwhile, investors await central banks’ meetings in Britain, the U.S. and Japan later this week.
In the Asian trading, the Australian dollar fell to 0.7521 against the U.S. dollar, from an early high of 0.7537. The aussie may test support near the 0.73 region.
Against the euro and the yen, the aussie dropped to 1.4898 and 82.93 from Friday’s closing of 1.4865 and 83.04, respectively. If the aussie extends its downtrend, it is likely to find support around 1.52 against the euro and 81.00 against the yen.
The aussie edged down to 1.0114 against the Canadian dollar from Friday’s closing value of 1.0134. On the downside, 0.99 is seen as the next support level for the aussie.
The NZ dollar fell to 4-day lows of 0.7189 against the U.S. dollar, 1.5597 against the euro and 1.0473 against the Australian dollar, from Friday’s closing quotes of 0.7208, 1.5513 and 1.0437, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.70 against the greenback, 1.59 against the euro, and 1.06 against the aussie.
Against the yen, the kiwi dropped to 79.24 from Friday’s closing value of 79.51. The kiwi may test support near the 77.00 region.
In today’s events, at 4:30 am ET, Reserve Bank of Australia Assistant Governor Guy Debelle is expected to speak at the Global FX Code of Conduct Launch in Hong Kong, via Satellite.
At 1:35 pm ET, Bank of Canada Senior Deputy Governor Carolyn Wilkins is expected to speak…