Australian, NZ Dollars Fall Amid Rising Risk Aversion Before U.S. CPI

The Australian and NZ dollars weakened against their major counterparts in the Asian session on Thursday, as most Asian shares fell ahead of U.S. inflation data that could offer clues on the Federal Reserve's policy outlook.

U.S inflation is expected to ease to 8 percent year-on-year in October from 8.2 percent in the previous month.

Oil prices fell as new COVID restrictions in China fuelled concerns about demand outlook.

Dovish comments from Reserve Bank of Australia Deputy Governor Michele Bullock also weighed on the aussie.

Bullock said that although interest rates may have to go a little higher, the "size and timing of future increases" would depend on the data.

The aussie fell to a 3-day low of 0.6412 against the greenback, more than 2-week low of 1.5642 against the euro and a 6-day low of 93.68 against the yen, after climbing to 0.6441, 1.5558 and 94.18, respectively in early deals. The aussie is poised to challenge support around 0.62 against the greenback, 1.61 against the euro and 88.00 against the yen.

The aussie edged down to 1.0917 against the kiwi and 0.8682 against the loonie, retreating from its early highs of 1.0938 and 0.8706, respectively. The aussie is seen finding support around 1.06 against the kiwi and 0.85 against the loonie.

The kiwi dropped to a 3-day low of 0.5865 against the greenback, 10-day low of 1.7089 against the euro and a 6-day low of 85.75 against the yen, from its early highs of 0.5894, 1.7000 and 86.19, respectively. Next key support for the kiwi is possibly seen around 0.57 against the greenback, 1.73 against the euro and 82.00 against the yen.

Looking ahead, U.S. weekly jobless claims for the week ended November 5 and consumer inflation data and monthly budget statement for October will be published in the New York session.