Monday morning in Asia, the Australian and the New Zealand dollars plummeted against their major counterparts as a plunge in Asian stocks reduced demand for higher-yielding currencies.
Tracking Wall Street’s more than 3% slump on Friday and a drop in commodity prices on disappointing U.S. jobs report and worries about a potential debt crisis in Hungary, Asian stocks opened sharply lower today.
Japan’s Nikkei 225 index fell 4%, Hong Kong’s Hang Seng slipped 2.4%, China’s Shangai composite index dropped 1.1%, South Korea’s Kospi declined 2.6%, Taiwan’s main index plunged 2.9%, Australia’s S&P 200 index slumped 2.8% and the All Ordinaries index was 2.7% lower.
The New Zealand stock market is closed today in honor of the Queen’s birthday.
An index measuring the performance of construction in Australia declined in May, the Australia Industry Group said today. The May figure came in at 53.3, down from 55.8 in April. Although the index remained above the boom-or-bust score of 50 that indicates expansion rather than contraction.
The Australian dollar declined against the US currency and the Japanese yen in early Asian deals on Monday. At 10:00 pm ET, the aussie fell to a 13-day low of 0.8099 against the greenback and a 12-day low of 73.70 against the yen, compared to Friday’s close of 0.8238 and 75.65, respectively. If the aussie weakens further, it may likely target 0.807 against the greenback and 72.0 against the yen. At present, the aussie is worth 0.8120 against the greenback and 74.0 against the yen.
During early Asian deals on Monday, the Australian dollar dropped against the euro and hit a 5-day low of 1.4696 at 9:30 pm ET. Since then, the euro-aussie pair has been moving sideways and is currently worth 1.4660. On the downside, 1.474 is seen as the next target level for the aussie. The euro-aussie pair closed last week’s trading at 1.4553.
The Aussie, which closed last week’s trading at 0.8743 against the Canadian dollar fell to more than a 13-month low of 0.8649 in early Monday Asian deals at 9:25 pm ET. Presently, the aussie-loonie pair is worth 0.8660 and the next downside target level for the Australian currency is seen at 0.828.
The Aussie that plummeted to a 2-week low of 1.2224 against the New Zealand dollar in early Monday Asian deals at 8:30 pm ET recovered thereafter. As of now, the aussie-kiwi pair is trading near last week’s close of 1.2297. If the aussie strengthens further, it may likely target the 1.240 level.
In early Asian deals on Monday, the New Zealand dollar fell against the US currency. The kiwi-greenback pair that closed Friday’s trading at 0.6706 is currently trading at a 12-day low of 0.6618. The next downside target level for the NZ dollar is seen at 0.656.
The New Zealand dollar plunged to an 11-day low of 60.26 against the yen in early Monday Asian deals at 10:00 pm ET. The kiwi-yen pair is now worth 60.40 with 59.0 seen as the next downside target level. The pair closed last week’s trading at 61.59.
During early Asian deals on Monday, the New Zealand dollar slumped against the euro. The euro-kiwi pair that closed Friday’s trading at 1.7850 is currently worth 1.8000. This set a 4-day low for the kiwi. If the NZ dollar slides further, it may likely target the 1.820 level.
The German factory orders for April and the Euro-zone sentix investor confidence for June are expected in the European session today.
The US consumer credit report for April has been slated for release at 3:00 pm ET.