Australian, NZ Dollars Drop Amid Lockdown Protests In China

The Australian and NZ dollars slipped against their major counterparts in the Asian session on Monday amid rising risk aversion, as stringent virus curbs in China triggered clashes in many cities, including Beijing.

Clashes have broken out in Beijing, Shanghai, Urumqi, Nanjing, Guangzhou, Wuhan and other cities across China to dissent against President Xi Jinping's zero-Covid policy.

The protests that erupted for a third day came after a blaze killed 10 in Urumqi.

Police used pepper spray in Shanghai against protesters demanding Xi to quit or to the ruling party to relinquish power.

Asian markets are mostly lower, as unrest over Covid lockdowns in China raised concerns about the economic outlook.

The aussie declined to 5-day lows of 0.6665 against the greenback and 0.8977 against the loonie, off its early highs of 0.6727 and 0.9014, respectively. The currency is likely to find support around 0.64 against the greenback and 0.88 against the loonie.

Reversing from its previous highs of 1.0810 against the kiwi and 1.5416 against the euro, the aussie dropped to 5-day lows of 1.0755 and 1.5536, respectively. The aussie is seen finding support around 1.06 against the kiwi and 1.57 against the euro.

The aussie touched 92.14 against the yen, its lowest level since November 17. Next key support for the currency is seen around the 91.00 area.

The kiwi depreciated to 5-day lows of 0.6191 against the greenback and 1.6713 against the euro, following its prior highs of 0.6231 and 1.6641, respectively. The kiwi is poised to find support around 0.60 against the greenback and 1.69 against the euro.

The kiwi was down against the yen, at nearly a 2-week low of 85.66. Should the kiwi drops further, it may face support around the 84.5 level.