The Australian and NZ dollars weakened against their major counterparts in the Asian session on Thursday, amid rising risk aversion on continued worries over a slowdown in economic growth due to the delta strain of the coronavirus and a possible pullback in stimulus measures from central banks in the U.S. and Europe.
Strong U.S. job openings data and comments from several Fed policymakers signaled that the U.S. central bank is likely to reduce asset purchases this year.
The European Central Bank’s monetary policy decision is due later in the day, with economists expecting it to reduce the pace of its emergency bond purchases from next quarter but to continue bond buys until 2024.
Chinese authorities summoned gaming giants to discuss implementation of new restrictions on video gaming for minors to tackle addiction to playing games.
The regulations came after Beijing’s recent clampdowns on a range of sectors including technology, education and property.
The aussie dropped to 0.7347 against the greenback and 1.6079 against the euro, off its early highs of 0.7370 and 1.6030, respectively. Next key support for the aussie is likely seen around 0.70 against the greenback and 1.62 against the euro.
The aussie hit a 1-week low of 80.92 against the yen, down from a high of 81.25 logged at 6:15 pm ET. The aussie may locate support around the 78.00 level.
The aussie retreated to 1.0365 against the kiwi, on track to pierce a 9-day low of 1.0364 seen earlier in the session. The currency is likely to face support around the 1.01 level.
In contrast, the aussie spiked higher to 0.9360 against the loonie from yesterday’s close of 0.9342. On the upside, 0.96 is possibly seen as its next resistance level.
The kiwi slipped to 0.7082 against the greenback, 78.02 against the yen and 1.6681 against the euro, following its prior highs of 0.7103 and 78.31 and a 2-day high of 1.6610, respectively. The kiwi is poised to challenge support around 0.69 against the greenback, 76.00 against the yen and 1.68 against the euro.
Looking ahead, the European Central Bank will announce interest rate decision at 7:45 am ET. The ECB is expected to hold its main refi rate at a record low zero percent and the deposit rate at -0.50 percent.
U.S. weekly jobless claims for the week ended September 4 will be published in the New York session.