Australian Dollar Rises As Asian Markets Trade Higher
27 June 2017 - 12:03PM
RTTF2
The Australian dollar strengthened against other major
currencies in the Asian session on Tuesday, as Asian markets traded
higher, though gains are modest, following the lackluster cues
overnight from Wall Street.
Investors are cautious as they eye the European Central Bank
forum on central banking currently underway in Portugal and an
address by Federal Reserve Chair Janet Yellen at an event in London
later in the day.
Crude oil delivery for August is currently up by 0.11 percent or
$43.49 per barrel. The crude oil price nudged higher, stemming
steep recent losses on talk of OPEC's resolve to re-balance oil
markets.
Meanwhile, the Australian dollar firmed on news that Chinese
industrial profits growth accelerated in May from a year ago.
Data from the National Bureau of Statistics showed that China's
industrial profits grew at a faster pace of 16.7 percent
year-over-year in May, following a 14.0 percent spike in April.
Monday, the Australian dollar had risen 0.21 percent against the
U.S. dollar, 0.67 percent against the yen, 0.31 percent against the
euro, and 0.19 percent against the NZ dollar. Meanwhile, the
Australian dollar held steady against the Canadian dollar.
In the Asian trading, the Australian dollar rose to 1-week highs
of 0.7604 against the U.S. dollar and 85.07 against the yen, from
yesterday's closing quotes of 0.7584 and 84.84, respectively. If
the aussie extends its uptrend, it may find find resistance around
0.77 against the greenback and 86.00 against the yen.
Against the euro and the Canadian dollar, the aussie advanced to
a 6-day high of 1.4718 and a 5-day high of 1.0074 from yesterday's
closing quotes of 1.4740 and 1.0046, respectively. The aussie may
test resistance around 1.45 against the euro and 1.02 against the
loonie.
Against the NZ dollar, the aussie edged up to 1.0422 from
yesterday's closing value of 1.0406. On the upside, 1.05 is seen as
the next resistance level for the aussie.
Meanwhile, the safe-haven yen fell against its major rivals amid
risk appetite.
The yen fell to nearly a 5-week low of 112.08 against the U.S.
dollar and nearly a 3-week low of 142.56 against the pound, from
yesterday's closing quotes of 111.84 and 142.30, respectively. If
the yen extends its downtrend, it is likely to find support around
114.00 against the greenback and 146.00 against the pound.
Against the euro and the Swiss franc, the yen dropped to a
1-month high of 125.36 and a 5-month of 115.29 from yesterday's
closing quotes of 125.04 and 115.02, respectively. The yen may test
support near 126.00 against the euro and 116.00 against the
franc.
Against the New Zealand and the Canadian dollars, the yen
slipped to more than 3-month lows of 81.69 and 84.56 from
yesterday's closing quotes of 81.51 and 84.44, respectively. On the
downside, 82.00 against the kiwi and 86.00 against the loonie are
seen as the next support levels for the yen.
Looking ahead, at 4:00 am ET, European Central Bank President
Mario Draghi is expected to speak at the European Central Bank
Forum on Central Banking, in Portugal.
At 4:30 am ET, Reserve Bank of Australia Assistant Governor Guy
Debelle is expected to speak at the Global FX Code of Conduct
Launch in Singapore, via satellite.
At 6:00 am ET, Bank of England Governor Mark Carney is scheduled
to hold a press conference about the Financial Stability Report, in
London.
In the New York session, U.S. S&P/Case-Shiller home price
index for April, U.S. consumer confidence index for June, and U.S.
Richmond Fed manufacturing index for June are slated for
release.
At 11:15 am ET, Federal Reserve Bank of Philadelphia President
Patrick Harker is expected to speak about the economic outlook and
international trade at the European Economics & Financial
Centre, in London.
At 1:00 pm ET, Federal Reserve Chair Janet Yellen will speak on
global economic issues at the British Academy 'President's
Lecture', in London.
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