Australian, New Zealand Dollars Rise On Trade Hopes
09 October 2019 - 7:11PM
RTTF2
The Australian and New Zealand dollars strengthened against
their major counterparts in the European session on Wednesday, as
sentiment lifted up following a media report that China is prepared
to agree a partial trade deal with the U.S to de-escalate the trade
war.
According to a report in Bloomberg, China is willing to accept a
limited deal, if President Donald Trump do not impose any more
tariffs on goods.
In return, China has offered to increase purchases of U.S.
agricultural products with an aim to reach an interim
agreement.
High-level trade talks between the United States and China are
set to begin on Thursday.
Survey results from Westpac showed that Australia's consumer
confidence weakened to the lowest level in more than four years in
October despite interest rate reductions.
The Westpac-Melbourne Institute Index of Consumer Sentiment
dropped to 92.8 in October from 98.2 in September. This was the
lowest score since July 2015.
The aussie rose to 0.6750 against the greenback and 72.49
against the yen, from its early 6-day low of 0.6723 and a 2-day low
of 71.92, respectively. The next possible resistance for the aussie
is seen around 0.71 against the greenback and 76.00 against the
yen.
The aussie recovered to 1.6267 against the euro and 1.0686
against the kiwi, from its previous lows of 1.6305 and 1.0667,
respectively. On the upside, 1.60 and 1.08 are possibly seen as the
next resistance levels for the aussie against the euro and the
kiwi, respectively.
Reversing from an early low of 0.8956 against the loonie, the
aussie edged higher to 0.8979. The currency is likely to locate
resistance around the 0.92 level.
The kiwi strengthened to an 8-day high of 67.90 against the yen,
off its early low of 67.34. The kiwi is seen finding resistance
around the 69.00 level.
The NZ currency bounced off to 1.7364 against the euro, from an
early low of 1.7409. This may be compared to a 5-day high of 1.7356
hit in the Asian session. If the kiwi rallies further, it may find
resistance around the 1.70 level.
The kiwi climbed to 0.6325 against the greenback, from a low of
0.6294 hit at 6:00 pm ET. Next immediate resistance for the kiwi is
seen around the 0.645 level.
Looking ahead, U.S. wholesale inventories for August are due in
the New York session.
At 2:00 pm ET, the Federal Reserve releases minutes from the
September 17-18 meeting.
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