Australian Dollar Rises Amid Risk Appetite
14 April 2021 - 6:16PM
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The Australian dollar climbed against its major counterparts in
the European session on Wednesday amid risk appetite, as inflation
fears reduced and investors cheered strong earnings updates from
the likes of SAP and LVMH Moet Hennessey.
Benchmark U.S. Treasury yields extended their decline to mark a
fresh three-week low after data showed U.S. inflation was not
rising too fast as had been feared.
Oil prices rose on signs of inventory drawdown and after OPEC
raised its forecast for growth in world oil demand this year.
Earnings will be a focus, with JPMorgan Chase & Co. and
Goldman Sachs Group Inc among the companies reporting their results
later today.
Fed Chair Jerome Powell is scheduled to speak at the Economic
Club of Washington later in the day.
The latest survey from Wetspac Bank and the Melbourne Institute
showed that Australia's consumer confidence spiked in April -
jumping 6.2 percent on month to a reading of 118.8.
That's the highest reading for the index since August 2010.
The aussie rose to 0.7696 against the greenback, its highest
level since March 23. Next immediate resistance for the aussie is
likely seen around the 0.78 level.
The aussie appreciated to a 1-week high of 83.86 against the yen
and a 6-day high of 1.5543 against the euro, off its prior lows of
83.11 and 1.5656, respectively. The aussie is seen locating
resistance around 86.00 against the yen and 1.49 against the
euro.
The aussie touched a fresh 3-week high of 0.9656 against the
loonie, gaining from a low of 0.9568 seen at 5:00 pm ET. The aussie
may target resistance around the 0.98 level.
In contrast, the aussie held near a 2-week low of 1.0802 versus
the kiwi, compared to Tuesday's close of 1.0822. The next likely
support for the aussie is seen around the 1.06 level.
New Zealand's central bank left its monetary policy unchanged
and agreed to cut its interest rates further if required as the
economic outlook remains highly uncertain.
The Monetary Policy Committee of the Reserve Bank of New Zealand
decided to keep the Official Cash Rate at 0.25 percent and the
Large Scale Asset Purchase at NZ$100 billion. The Funding for
Lending programmes were also kept unchanged.
Looking ahead, U.S. import and export prices for March, as well
as Fed Beige book report are slated for release in the New York
session.
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