SYDNEY: The Australian and New Zealand dollars were cooling their heels on Tuesday as the deadlock on US fiscal stimulus restrained risk assets, while data underlined the economic damage being done by the new lockdown in Victoria state.
The Aussie stood at $0.7170, after a pullback form the recent 18-month peak at $0.7242 found support around $0.7140. More support comes in at $0.7070/80 with immediate resistance at $0.7184.
The kiwi dollar was holding at $0.6610, just above important support at $0.6575 and short of the recent top of $0.6716. Both currencies have edged back as the US dollar benefited from a squeeze on crowded short positions after weeks of losses.
The Aussie also had domestic troubles as a fresh coronavirus lockdown in Melbourne, the capital of Victoria, hurt business and consumer sentiment. The NAB business survey out Tuesday showed confidence took a turn for the worse in July even as conditions improved outside of Victoria.
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