Australian, NZ Dollars Decline Amid Virus Concerns, Soft China Retail Sales Data

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The Australian and NZ dollars fell against their major counterparts in the Asian session on Monday, as China retail sales grew less than expected in April and the virus outbreak flared up in some parts of Asia, diminishing the appeal of high-yielding assets.

Data from the National Bureau of Statistics showed that China retail sales advanced an annual 17.7 percent, missing forecasts for 24.9 percent and down sharply from 34.2 percent a month earlier.

Industrial production was up 9.8 percent on year in April – in line with expectations following the 14.1 percent jump in March.

Singapore will close most schools from Wednesday amid a sharp spike in Covid-19 cases.

Taiwan tightened curbs by limiting gatherings and shutting down cinemas and entertainment venues until May 28.

The aussie dropped to 0.7746 against the greenback and 84.61 against the yen, after rising to 0.7784 and 85.14, respectively in early deals. The next possible support for the aussie is seen around 0.75 against the greenback and 82.00 against the yen.

The Australian currency eased off to 1.5668 against the euro and 0.9390 against the loonie, off its early highs of 1.5595 and 0.9429, respectively. If the aussie continues its fall, 1.61 and 0.92 are possibly seen as its next support levels against the euro and the loonie, respectively.

The kiwi weakened to 0.7210 against the greenback and 78.78 against the yen, down from its prior highs of 0.7250 and 79.28, respectively. The kiwi is poised to challenge support around 0.70 against the greenback and 76.00 against the yen.

Retreating from its previous highs of 1.6737 against the euro and 1.0719 against the aussie, the kiwi dropped to 1.6845 and 1.0753, respectively. Next key support for the kiwi is likely seen around 1.72 against the euro and 1.09 against the aussie.

Looking ahead, at 8:15 am ET, Canada housing starts for April are scheduled for release.

New York Fed’s empire manufacturing survey and U.S. NAHB housing market index for May will be published in the New York session.

The material has been provided by InstaForex Company – www.instaforex.com

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