Australian, NZ Dollars Appreciate As Evergrande Fears Ease
The Australian and NZ dollars climbed against their major
counterparts in the Asian session on Monday, as fears over China
Evergrande's financial troubles receded after the property
developer restarted work on more than 10 projects in six cities
In a post on its Wechat account on Sunday, Evergrande said that
some of the projects have reached the stage of interior decoration
and others have completed construction.
China state media reported that the contagion from the debt
problems of the country's estate companies' to the financial sector
is generally controllable.
Investors await earnings results from tech companies as well as
key risk events including central bank meetings in Canada, Japan
and Europe for more direction.
Federal Reserve Chair Jerome Powell said on Friday that the
central bank will begin tapering bond purchases soon, but will hold
off on raising rates.
The aussie rose to 0.7492 against the greenback and 85.14
against the yen, off its early lows of 0.7461 and 84.69,
respectively. The aussie is likely to challenge resistance around
0.77 against the greenback and 88 against the yen.
The aussie reversed from its early lows of 0.9227 against the
loonie, 1.5595 against the euro and 1.0431 against the kiwi, edging
up to 0.9252, 1.5559 and 1.0455, respectively. The aussie is seen
finding resistance around 0.94 against the loonie, 1.52 against the
euro and 1.06 against the kiwi.
The kiwi advanced to 0.7170 against the greenback and 81.50
against the yen, following its prior lows of 0.7140 and 81.09,
respectively. The kiwi is poised to find resistance around 0.73
against the greenback and 83.5 against the yen.
The kiwi remained higher against the euro, after reaching as
high as 1.6159 at 5:30 pm ET. The pair had closed Friday's deals at
The safe-haven yen fell on improved risk sentiment.
The yen dropped to 132.60 against the euro, 124.20 against the
franc and 156.82 against the pound, from its previous highs of
132.00, 123.74 and 155.97, respectively. Next key support for the
yen is likely seen around 135.5 against the euro, 126.00 against
the franc and 160.00 against the pound.
Retreating from its prior highs of 113.42 against the greenback
and 91.69 against the loonie, the yen weakened to 113.83 and 92.15,
respectively. If the yen slides further, 115.00 and 94.00 are
likely seen as its next support levels against the greenback and
the loonie, respectively.
Looking ahead, Canada wholesale sales and U.S. monthly budget
statement for September will be featured in the New York
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