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Aussie, Kiwi, Loonie Slide as Risk-Off Mood Returns to Asia
Aussie, kiwi, and loonie fell 0.3-0.5% as Asian stocks slipped on Middle East uncertainty. Traders said the move was position trimming ahead of the U.S. jobs report.
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The Australian, New Zealand and Canadian dollars all lost ground in Asian trading Tuesday as equity markets across the region slipped. The move came as uncertainty around the Middle East peace talks and the status of the Strait of Hormuz kept traders cautious.
The Aussie dollar fell 0.4% against the greenback, while the kiwi dropped 0.5%. The loonie weakened 0.3% against its U.S. counterpart. All three currencies also lost ground against the yen and the euro.
The selloff tracked a broader risk-off shift. Japan's Nikkei 225 fell 1.2%, Australia's ASX 200 dropped 0.8%, and Hong Kong's Hang Seng Index lost 0.9%. Traders said the moves reflected position trimming rather than a fundamental reassessment of the currencies.
"It's a classic risk-off session," a Sydney-based currency trader said. "The headlines out of the Middle East talks are muddy, and until the Strait of Hormuz situation clears, nobody wants to hold risk."
The Strait of Hormuz, a critical chokepoint for global oil shipments, has been a focal point for markets since the conflict escalated. A full reopening would ease supply concerns and lower oil prices, which would benefit net importers like Japan and hurt exporters like Canada. The lack of clarity on that front has kept energy markets on edge, with Brent crude holding near $72 a barrel.