Antipodean Currencies Rise Amid Risk Appetite
June 06 2024 - 12:57AM
RTTF2
The antipodean currencies such as the Australia and the New
Zealand dollars strengthened against their major counterparts in
the Asian session on Thursday amid risk appetite, following the
broadly positive cues from global markets overnight, amid optimism
about the outlook for U.S. interest rates after a report showed
U.S. private sector job growth slowed by more than expected in the
month of May. Treasury yields also extended the recent downward
trend.
Gains across most sectors led by gold miners and technology
stocks, also led to the upturn of the investor sentiment.
Crude oil prices bounced higher from four-month lows after OPEC
decided not to extend production cuts. West Texas Intermediate for
July delivery was up $1.04 or 1.42 percent to $74.29 per
barrel.
In the Asian trading today, the Australian dollar rose to a
14-month high of 0.9135 against the Canadian dollar, from
yesterday's closing value of 0.9103. The aussie may test resistance
near the 0.92 region.
Against the U.S. dollar and the euro, the aussie advanced to
2-day highs of 0.6683 and 1.6298 from Wednesday's closing quotes of
0.6647 and 1.6350, respectively. The aussie may test resistance
near 0.67 against the greenback and 1.62 against the euro.
The aussie edged up to 103.98 against the yen, from yesterday's
closing value of 103.77. On the upside, 105.00 is seen as the next
resistance level for the aussie.
The NZ dollar rose to nearly a 3-month high of 0.6215 against
the U.S. dollar, from yesterday's closing value of 0.6193. The next
resistance level for the kiwi is seen around the 0.63 region.
The kiwi edged up to 96.74 against the yen, from Wednesday's
closing value of 96.63. On the upside, 99.00 is seen as the next
resistance level for the kiwi.
Against the euro and the Australian dollar, the kiwi advanced to
nearly a 3-1/2-month high of 1.7525 and nearly a 2-1/2-month high
of 1.0734 from yesterday's closing quotes of 1.7525 and 1.0734,
respectively. If the kiwi extends its downtrend, it is likely to
find resistance around 1.73 against the euro and 1.06 against the
aussie.
Looking ahead, Eurozone retail sales data for April is due to be
released at 5:00 am ET in the European session.
At 8:15 am ET, the European Central Bank will announce its
monetary policy decision. The bank is widely expected to cut its
key interest rates, ending the rate hiking cycle that began in
mid-2022.
At the governing council meeting in Frankfurt, policymakers are
set to lower the main refinancing rate, the deposit facility rate
and the lending rate by 25 basis points each.
Following the meeting, ECB Chief Christine Lagarde holds press
conference at 8:45 am ET.
In the New York session, U.S. and Canada trade data for April,
U.S. weekly jobless claims data and Canada Ivey PMI for May are
slated for release.
Euro vs NZD (FX:EURNZD)
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