NZ, Canadian Dollars Advance Amid Rising Risk Appetite After China Data
17 April 2019 - 1:36PM
RTTF2
The New Zealand and Canadian dollars strengthened against their
major counterparts in the Asian session on Wednesday amid rising
risk appetite, as upbeat Chinese economic data helped ease worries
about a global economic slowdown.
Data from the National Bureau of Statistics showed that China's
gross domestic product or GDP expanded 6.4 percent in the first
quarter of 2019 on a yearly basis, beating forecasts for an
increase of 6.3 percent.
In addition, China's retail sales growth for March also beat
expectations, while its fixed asset investment for the month rose
in line with expectations.
The NZ dollar tumbled early in the session, after the nation's
consumer prices grew less than forecast in the first quarter,
raising hopes for a cut in interest rate.
Data from the Statistics New Zealand showed that New Zealand
inflation rose 0.1 percent on quarter in the first quarter of
2019.
That was unchanged from the previous three months, although it
was shy of expectations for a gain of 0.3 percent.
The kiwi rebounded to 0.6748 against the greenback, from a
3-1/2-month low of 0.6665 hit at 6:45 pm ET. This may be compared
to a 2-day high of 0.6776 seen at 6:30 pm ET. The next possible
resistance for the kiwi is seen around the 0.69 level.
Following a 2-month low of 74.64 set at 6:45 pm ET, the kiwi
reversed direction with the pair trading at 75.46. The kiwi has set
a 2-day high of 75.86 versus the yen at 6:30 pm ET. The kiwi is
poised to find resistance around the 76.00 level.
The kiwi rose back to 1.6759 against the euro, off its early
near 3-month low of 1.6915. The kiwi recorded a 6-day high of
1.6657 against the euro early in the trading session. If the kiwi
rises further, 1.66 is possibly seen as its next resistance
level.
The kiwi held steady against the aussie, after having rebounded
from a 5-month low of 1.0728 hit at 6:45 pm ET. The pair finished
yesterday's deals at 1.0606.
The loonie that ended yesterday's trading at 1.3349 against the
greenback firmed to a 2-day high of 1.3326. The loonie is seen
finding resistance around the 1.30 level.
The loonie recovered to 1.5069 against the euro, from a low of
1.5093 hit at 9:30 pm ET. The loonie has set a 2-day high of 1.5055
versus the euro at the beginning of today's trading. On the upside,
1.48 is possibly seen as the next resistance level for the
loonie.
The loonie strengthened to a 2-day high of 84.02 versus the yen,
following a low of 83.72 hit at 9:15 pm ET. Next key resistance for
the loonie is seen around the 85.5 level.
The loonie staged a modest rebound to 0.9587 against the aussie,
off its early 3-1/2-month low of 0.9615. This may be compared to a
2-day high of 0.9559 seen at 6:45 pm ET. The loonie is likely to
challenge resistance around the 0.945 level.
Looking ahead, U.K. CPI and PPI for March, Eurozone trade data
for February and final CPI for March are due in the European
session.
In the New York session, U.S. and Canadian trade data for
February, Canada CPI for March, U.S. wholesale inventories for
February and Federal Reserve's Beige book report are scheduled for
release.
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