Australian, NZ Dollars Strengthen As Commodity Prices Rise
18 May 2021 - 1:45PM
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The Australian and New Zealand dollars climbed against their
major counterparts in the Asian session on Tuesday, as a weaker
dollar supported commodity prices.
The dollar came under pressure following Dallas Fed President
Robert Kaplan's comments that a rate hike is unlikely to happen
until next year.
Growing hopes that the Fed will tolerate a temporary spike in
inflation soothed fears over for a Fed rate hike this year.
Asian shares rose despite the softer cues overnight from Wall
Street, as investors focused on reopening of economies such as the
U.S. and Europe.
Minutes from the Reserve Bank of Australia's May 4 meeting
showed that members of the monetary policy board acknowledged that
the country's economic recovery from the Covid-19 pandemic was
stronger than expected.
As a result, Australia's forecast for gross domestic product was
revised higher.
The aussie advanced to a 6-day high of 0.7808 against the
greenback and a 4-day high of 85.15 against the yen, off its early
lows of 0.7757 and 84.68, respectively. The aussie is poised to
face resistance around 0.80 against the greenback and 88 against
the yen.
The aussie reversed from its early low of 1.5652 against the
euro and a 5-day low of 0.9357 against the loonie, edging up to
1.5605 and 0.9391, respectively. The next possible resistance for
the aussie is seen around 1.53 against the euro and 0.96 against
the loonie.
The NZ currency appreciated to a 6-day high of 0.7257 against
the greenback, after falling to 0.7197 at 5:30 pm ET. On the
upside, 0.74 is likely seen as its next resistance level.
The kiwi rose to 79.14 against the yen and 1.6794 against the
euro, following its prior lows of 78.59 and 1.6867, respectively.
The currency may possibly challenge resistance around 81.00 against
the yen and 1.62 against the euro.
The kiwi recovered to 1.0756 against the aussie, from an early
Asian session's low of 1.0775. If the kiwi rises further, 1.06 is
likely seen as its next resistance level.
Looking ahead, Eurozone trade data for March and GDP and
employment data for the first quarter are set for release in the
European session.
U.S. housing starts and building permits for April are due out
in the New York session.
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