Australian, NZ Dollars Lower On Recession Fears

The Australian and NZ dollars drifted lower against their major counterparts in the Asian session on Thursday, as weak U.S. economic data and corporate earnings results pointed to the damaging economic impact of the coronavirus pandemic, dampening sentiment.

Globally, the number of coronavirus cases has topped more than 2 million, while more than 133,000 deaths related to the pandemic have also been reported.

The United States reported nearly 2,600 additional deaths from the new coronavirus in 24 hours, a new record and the heaviest daily toll of any country, according to Johns Hopkins University.

Data from the Australian Bureau of Statistics showed that the unemployment rate in Australia came in at a seasonally adjusted 5.2 percent in March.

That was up from 5.1 percent in February, but it beat expectations for 5.4 percent.

The Australian economy added 5,900 jobs last month after collecting 26,700 jobs in February - but that was far better than forecasts that suggested a loss of 30,000 jobs due to the impact of the Covid-19 virus.

The aussie fell to 1-week lows of 0.6264 against the greenback and 1.7351 against the euro, from its early highs of 0.6322 and 1.7249, respectively. The aussie is seen finding support around 0.60 against the greenback and 1.75 against the euro.

Reversing from its previous highs of 68.07 against the yen and 0.8920 against the loonie, the aussie depreciated to 67.61 and 0.8852, respectively. The aussie may challenge support around 65.00 against the yen and 0.86 against the loonie.

The kiwi weakened to 8-days low of 1.8296 against the euro and 0.5942 against the greenback, off its early highs of 1.8172 and 0.5999, respectively. The kiwi is poised to find support around 1.86 against the euro and 0.58 against the greenback.

The kiwi reversed from an early high of 64.59 against the yen, dropping to 64.09. If the kiwi slides further, it may target support around the 60.00 level.

The kiwi slipped to near a 5-month low of 1.0574 against the aussie and held steady thereafter. At yesterday's close, the pair was worth 1.0534.

Looking ahead, Eurozone industrial production for February is due in the European session.

U.S. weekly jobless claims for the week ended April 11, building permits and housing starts for March will be featured in the New York session.