Australian, NZ Dollars Fall Amid Risk Aversion

The Australian and New Zealand dollars declined against their major opponents in the Asian session on Monday amid risk aversion, as the ongoing turmoil in Turkey and the fresh fall in the Turkish lira sparked concerns of contagion fears.

Tensions between the U.S. and Turkey haven risen due to Turkish detention of U.S. pastor Andrew Brunson and as U.S. President Donald Trump announced that he has authorized the doubling on steel and aluminum tariffs on Turkey.

Turkish Finance Minister Berat Albayrak said an action plan would come into effect starting today to ease investor concerns.

"Our institutions will take the necessary steps to relax the markets," he said. The banking watchdog said it would limit swap transactions.

Data from Statistics New Zealand showed that New Zealand's food prices rose 0.7 percent on month in July, up from 0.5 percent in June.

Vegetable prices rose 9.2 percent in the month, with higher prices for fresh lettuce, tomatoes, and broccoli making the largest contributions.

The aussie edged down to 1.5658 against the euro, from a high of 1.5617 seen at 5:15 pm ET. The next likely support for the aussie is seen around the 1.58 level.

The aussie fell to more than a 7-month low of 0.7263 against the greenback and held steady thereafter. At last week's close, the pair was worth 0.7299. The aussie is poised to find support around the 0.71 level.

The aussie dropped to a 4-day low of 1.1037 against the kiwi and a 21-month low of 79.99 against the yen, off its early highs of 1.1082 and 80.77, respectively. The aussie is seen finding support around 1.09 against the kiwi and 78.00 against the yen.

The aussie edged down to 0.9559 against the loonie, from an early high of 0.9592, and held steady thereafter. Next key support for the aussie is seen around the 0.94 region.

The NZ dollar fell back to 0.6571 against the greenback, from a high of 0.6594 hit at 7:00 pm ET. This may be compared to a 2-1/2-year low of 0.6561 touched at the beginning of today's trading. On the downside, 0.64 is possibly seen as the next support level for the kiwi.

The kiwi declined to a 2-year low of 72.35 against the yen, reversing from a high of 72.95 seen at 7:15 pm ET. If the kiwi falls further, 71.00 is likely seen as its next support level.

Pulling away from an early high of 1.7268 against the euro, the kiwi dropped back to 1.7325. The kiwi is likely to challenge support around the 1.78 level.