Australia, NZ dlrs hammered as China's COVID protests grow



By Stella Qiu

SYDNEY, Nov 28 (Reuters) - The Australian and New Zealand dollars took a beating on Monday, as investors ditched riskier assets on concerns that growing protests in China against the government's zero-COVID policy would further undermine the world' second-largest economy.

The Aussie, a liquid proxy for the Chinese yuan, tumbled 1% to $0.6686 AUD=D3 , having added 1.2% in the previous week on a broadly softer U.S. dollar. It has support at around 66 cents and resistance lies near 68 cents.

The kiwi dollar slid 0.6% to $0.6207 NZD=D3 , also pulling back from a 1.5% rally last week to the highest since late August, buoyed by expectations that the Reserve Bank of New Zealand would stay aggressive to tame inflation.

"The Aussie has repeatedly failed around 68 cents this month despite the U.S. dollar's wobbles. Weakness in base metals and energy prices already indicated renewed concern over China's economic outlook," said Sean Callow, a currency strategist at Westpac in Sydney.

"China's combination of rising case numbers and an unrealistic goal of stamping out the virus is likely to maintain investor concern near term, even if the protests are reduced with harsh measures," said Callow, adding that the currency is likely to be on the back foot in the near term.

Over the weekend, waves of protests against China's zero-COVID approach spread to many parts of the country as the number of COVID cases continued to hit record highs. That fuelled concerns about the health of China's economy and cast a pall over the global growth outlook.

The offshore Chinese yuan CNH= weakened as much as 0.8% earlier in the session, although it has since recouped some of the losses. Chinese bluechips .CSI300 dropped 1.6% while Hong Kong's Hang Seng index .HSI fell 2%.

The Aussie did not react much to domestic data on Monday showing that Australia's retail sales suffered the first fall this year, which adds to the evidence that rate hikes were working to cool red-hot demand.

Markets are still wagering on another quarter-point hike to 3.10% at the Reserve Bank of Australia's December policy meeting next week, but trimmed the implied peak for rates slightly to around 3.78% from 3.85% ahead of the retail data. 0#RBAWATCH

Australian government bond yields eased slightly. Yields on 10-year bonds AU10YT=RR fell 4 basis points to 3.548%, leaving the spread over the Treasuries at minus 10 basis points.

Yields on three-year bonds AU3YT=RR fell 5 bps to 3.224%.
Reporting by Stella Qiu Editing by Shri Navaratnam

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。

所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。

本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示:您的資金存在風險。槓桿商品並不適合所有客戶。請詳細閱讀我們的風險聲明