Australian, NZ Dollars Advance Amid Risk Appetite
13 April 2018 - 2:11PM
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The Australian and New Zealand dollars strengthened against
their major counterparts in early European deals on Friday, as
sentiment improved on fading geopolitical worries following Trump's
comments on Syria and rejoining TPP.
Trump tweet that the U.S. would rejoin the controversial Trans
Pacific Partnership trade pact if the deal were substantially
better than the one offered to former President Barack Obama helped
eased geopolitical and trade tensions.
Regarding Syria, Trump tweeted that a possible U.S. missile
strike on Syria might not be imminent. "Never said when an attack
on Syria would take place. Could be very soon or not so soon at
all!" Trump said.
Investors digested mixed Chinese trade data for March.
China's March exports fell an annual 2.7 percent in dollar terms
to mark the first drop since February last year, while imports grew
14.4 percent, beating forecasts, customs data showed.
In economic front, data from BusinessNZ showed that the
manufacturing sector in New Zealand continued to expand in March,
albeit at a slower pace, with a seasonally adjusted PMI score of
52.2.
That's down from 53.3 in February, although it remains above the
boom-or-bust line of 50 that separates expansion from
contraction.
The aussie climbed to 4-week highs of 1.5808 against the euro
and 0.7796 against the greenback, from its early lows of 1.5901 and
0.7751, respectively. The aussie is seen finding resistance around
1.56 against the euro and 0.79 against the greenback.
The aussie strengthened to a 3-day high of 0.9802 against the
loonie and more than a 4-week high of 83.93 versus the yen, coming
off from its previous lows of 0.9756 and 83.14, respectively. If
the aussie rises further, 0.99 and 86.00 are possibly seen as its
next resistance levels against the loonie and the yen,
respectively.
The aussie advanced to a 4-day high of 1.0559 against the kiwi,
from Thursday's closing value of 1.0507. On the upside, 1.07 is
likely seen as the next resistance for the aussie.
The New Zealand dollar firmed to near a 2-month high of 0.7392
against the greenback, more than 2-month high of 79.54 versus the
yen and near a 3-month high of 1.6674 against the euro, reversing
from its early lows of 0.7368, 79.09 and 1.6728, respectively. The
next possible resistance for the kiwi is seen around 0.75 against
the greenback, 81.00 versus the yen and 1.64 against the euro.
Looking ahead, Eurozone trade data for February is due in the
European session.
In the New York session, Canada existing home sales for March
and University of Michigan's preliminary consumer sentiment index
for April are scheduled for release.
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