CANBERA (dpa-AFX) - The commodity currencies such as the Australia, New Zealand and the Canadian dollars weakened against their major currencies in the Asian session on Thursday, amid escalating trend in the ongoing conflict between Israel and Iran as they continued to attack each other for the seventh consecutive day, with speculation of the U.S. joining Israel in striking Iranian nuclear sites.
The U.S. Fed also announced its widely expected decision to leave interest rates unchanged. Fed officials still seem to expect to two interest rate cuts this year.
U.S. participation could escalate the crisis by increasing the chances of Iran's allies joining the war and prolong the conflict thus impacting the global financial and commodity markets severely.
Now, Iran has threatened to close the 39-km Strait of Hormuz which allows transport of one-sixth of global oil and one-third of world's Liquified Natural Gas. If it happens, it could spur retaliation by U.S. and its allies.
In economic news, data from the Australian Bureau of Statistics showed that Australia's jobless rate remained stable in May. The unemployment rate stood at 4.1 percent in May, the same as in April and also in line with expectations.
The number of unemployed increased 1,500 from the previous month to 620,800 in May. At the same time, employment rose by 28,000 to 14.63 million.
Data from Statistics New Zealand showed that New Zealand's gross domestic product expanded by a seasonally adjusted 0.8 percent on quarter in the first quarter of 2025. That beat forecasts for an increase of 0.7 percent following the downwardly revised 0.5 percent gain in the previous quarter (originally 0.7 percent).
On an annualized basis, GDP fell 0.7 percent - again exceeding expectations for a decline of 0.8 percent following the downwardly revised 1.3 percent contraction in the three months prior (originally -1.1 percent).
In the Asian trading today, the Australian dollar fell to a 3-day low of 93.81 against the yen, from yesterday's closing value of 94.31. The next possible upside target for the aussie is seen around the 92.00 region.
Against the U.S. and the Canadian dollars, the aussie edged down to 0.6475 and 0.8881 from Wednesday's closing quotes of 0.6506 and 0.8910, respectively. If the aussie extends its downtrend, it is likely to find support around 0.63 against the greenback and 0.87 against the loonie.
The aussie dropped to 1.7703 against the euro, from yesterday's closing value of 1.7639. On the downside, 1.79 is seen as the next support level for the aussie.
The NZ dollar fell to more than a 3-week low of 1.0829 against the Australian dollar and more than a 2-week low of 0.5982 against the U.S. dollar, from yesterday's closing quotes of 1.0793 and 0.6029, respectively. If the kiwi extends its downtrend, it is likely to support around 1.09 against the aussie and 0.58 against the greenback.
Against the yen and the euro, the kiwi slipped to 3-day lows of 86.84 and 1.9143 from Wednesday's closing quotes of 87.37 and 1.9039, respectively. The kiwi is likely to find support around 85.00 against the yen and 1.92 against the euro.
The Canadian dollar fell to a 9-day of 1.3728 against the U.S. dollar and a 6-day low of 105.61 against the yen, from yesterday's closing quotes of 1.3697 and 105.85, respectively. If the loonie extends its downtrend, it is likely to find support around 1.39 against the greenback and 103.00 against the yen.
Against the euro, the loonie edged down to 1.5722 from Wednesday's closing value of 1.5716. On the downside, 1.58 is seen as the next support level for the loonie.
Looking ahead, Eurozone construction output data for April is due to be released at 5:00 am ET in the European session.
The BoE is expected to retain its benchmark rate at 4.25 percent amid rising geopolitical tensions and inflation remaining persistently above the target. The announcement is due at 7.00 AM ET.
U.S. stock markets are closed in observance of Juneteenth holiday.
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