CANBERA (dpa-AFX) - The antipodean currencies such as the Australia and the New Zealand dollars weakened against their major currencies in the Asian session on Tuesday, as Asian stock markets traded lower as South Korean markets tumbled amid weakness in semiconductor stocks on concerns over returns on huge AI spending and mixed earnings and cautious forecasts from major US technology firms.
Meanwhile, reports suggesting a possible de-escalation in the Middle East sent crude oil price tumbling, lowering inflation concerns and capping market losses.
Iran's news agency quoted Iran's President Masoud Pezeshkian as stating that Iran's Supreme Leader Mojtaba Khamanei granted powers to the government in its talks with the U.S. in the ongoing efforts to end the war.
Over the weekend, Secretary of State Marco Rubio said President Donald Trump would like to resolve the U.S.-Iran war 'diplomatically.'
Qatar submitted revised proposals to convince Iran for an agreement with the U.S. Iran acknowledged that discussions are ongoing.
Despite the uncertainty on the outcome and the hard stance shown by leaders of both the nations, traders welcomed these developments although with cautious optimism.
Crude oil prices tumbled on reports that discussions are ongoing to settle the conflict between the U.S. and Iran. West Texas Intermediate crude for December delivery was down $7.76 or 7.45 percent at $96.36 per barrel.
Data from Statistics New Zealand showed that the total number of building permits issued in New Zealand was down a seasonally adjusted 7.9 percent on month in September, following the 5.3 percent increase in August.
In the year ended September 2026, the actual number of new dwellings consented was 41,091, up 18 percent on year.
The Australian dollar extended its weakness against other major currencies after the RBA rate decision.
The Reserve Bank of Australia raised its benchmark interest rate for the fifth time this year to bring inflation back to the target.
The board, governed by Michele Bullock, voted 6-3 to lift the cash rate target by 25 basis points to 4.85 percent, as widely expected.
The bank has raised its key rate by 125 basis points so far this year.
In the Asian trading today, the Australian dollar fell to an 8-day low of 110.11 against the yen and a 5-day low of 1.2393 against the NZ dollar, from yesterday's closing quotes of 110.54 and 1.2460, respectively. If the aussie extends its downtrend, it is likely to find support around 108.00 against the yen and 1.68 against the kiwi.
Against the euro, the aussie dropped to nearly a 2-week low of 1.6047 from Monday's closing value of 1.5984. The aussie may test support around the 1.61 region.
Against the U.S. and the Canadian dollars, the aussie slipped to a 2-week low of 0.6973 and nearly a 5-month low of 0.9749 from Monday's closing quotes of 0.6999 and 0.9789, respectively. On the downside, 0.68 against the greenback and 0.96 against the loonie are seen as the next support levels for the aussie.
The NZ dollar fell to a 6-day low of 0.5603 against the U.S. dollar and a 4-day low of 88.46 against the yen, from yesterday's closing quotes of 0.5617 and 88.71, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.55 against the greenback and 87.00 against the yen.
Against the euro, the kiwi slipped to nearly a 3-week low of 1.9963 from Monday's closing value of 1.9918. The kiwi is likely to find support around the 2.01 region.
Looking ahead, U.S. Redbook report, U.S. factory orders for September and U.S. durable goods orders for September are slated for release.
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