Antipodean Currencies Rise As Asian Markets Traded Higher
October 09 2024 - 10:41PM
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The Antipodean currencies such as the Australia and the New
Zealand dollars strengthened against their major currencies in the
Asian session on Thursday, as traders remain optimistic about more
interest rate cuts by the U.S. Fed, and several other central
banks. The minutes from the U.S. Fed's September meeting showed
officials agreed to cut interest rates but were unsure how
aggressive to get.
Traders now look ahead to the release of U.S. consumer price and
producer price inflation data for more clarity on how aggressively
the Fed will lower rates in the coming months.
Markets speculate a rate cut of a 25 basis points (bps) by the
Federal Reserve (Fed) in November.
New York Fed President John Williams said on Tuesday that it
will be appropriate again for the central bank to reduce rates
'over time.' Separately, Fed Governor Adriana Kugler said there is
a case for more easing if inflation keeps easing. In the Asian
trading today, the Australian dollar rose to 3-day highs of 100.67
against the yen and 0.9232 against the Canadian dollar, from
Wednesday's closing quotes of 100.28 and 0.9209, respectively. If
the aussie extends its uptrend, it is likely to find resistance
around 102.00 against the yen and 0.94 against the loonie.
Against the U.S. dollar and the euro, the aussie edged up to
0.6737 and 1.6243 from yesterday's closing quotes of 0.6717 and
1.6281, respectively. The aussie may test resistance around 0.69
against the greenback and 1.60 against the euro.
The NZ dollar rose to a 3-day high of 91.06 against the yen,
from yesterday's closing value of 90.51. The kiwi may test
resistance around the 92.00 region.
Against the U.S. and the Australian dollars, the kiwi edged up
to 0.6093 and 1.1051 from Wednesday's closing quotes of 0.6063 and
1.1075, respectively. If the kiwi extends its uptrend, it is likely
to find resistance around 0.63 against the greenback and 1.08
against the aussie.
The kiwi climbed to 1.7957 against the euro, from yesterday's
closing value of 1.8036. On the upside, 1.75 is seen as the next
resistance level for the kiwi.
Looking ahead, the European Central Bank publishes the account
of the monetary policy meeting of the governing council held on
September 11 and 12, at 7:30 am ET. At the meeting, the bank had
lowered its key interest rates by 25 basis points.
In the New York session, U.S. CPI data for September and U.S.
weekly jobless claims data are slated for release.
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