Antipodean Currencies Slide As Asian Stock Markets Traded Lower

Antipodean currencies such as the Australia and the New Zealand dollars weakened against their major rivals in the Asian session on Wednesday, as investors reacted to data that showed a slowdown in global manufacturing activity in July, including in China, Japan, South Korea, Taiwan and Vietnam, raising fresh concerns about Asia's fragile economic recovery.

Reports also showed a slowdown in manufacturing activity in the U.S., Europe and the U.K.

The NZ dollar fell further after the release of the nation's weak jobs data in the second quarter of 2023.

Data from Statistics New Zealand showed that the unemployment rate in New Zealand came in at a seasonally adjusted 4.6 percent in the second quarter of 2023. That missed forecasts for 3.5 percent and was up from 3.4 percent in the three months prior.

In the Asian trading today, the Australian dollar weakened against other major currencies in the Asian session on Wednesday.

The Australian dollar fell to nearly a 3-month low of 1.6673 against the euro and a 2-day low of 94.34 against the yen from yesterday's closing quotes of 1.6599 and 94.76, respectively. If the aussie extends its downtrend, it may find support around 1.69 against the euro and 90.00 against the yen.

Against the U.S. and the Canadian dollars, the aussie dropped to nearly a 2-month low of 0.6586 and more than a 1-month low of 0.8757 from Tuesday's closing quotes of 0.6611 and 0.8779, respectively. The aussie may test support near 0.64 against the greenback and 0.85 against the loonie.

The NZ dollar fell to more than a 1-month low of 0.6101 against the U.S. dollar, from yesterday's closing value of 0.6148. On the downside, 0.59 is seen as the next support level for the kiwi.

Against the euro and the yen, the kiwi dropped to a 9-day low of 1.7997 and a 2-day low of 87.42 from Tuesday's closing quotes of 1.7857 and 88.12, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.82 against the euro and 83.00 against the yen.

The kiwi edged down to 1.0804 against the Australian dollar from yesterday's closing value of 1.0750. The kiwi may test support near the 1.10 region.

Looking ahead, Swiss SECO consumer confidence index for the third quarter and Swiss procure.ch manufacturing PMI for July are due to be released in the European session.

In the New York session, U.S. MBA mortgage approvals data, U.S. ADP non-farm employment data for July and U.S. EIA weekly crude oil inventory data are slated for release.

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