Antipodean Currencies Rise Amid Risk Appetite
11 October 2024 - 2:33PM
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The Antipodean currencies such as the Australia and the New
Zealand dollars strengthened against their major currencies in the
Asian session on Friday, as investor sentiment boosted after data
showed the bigger-than-expected increase in U.S. consumer prices
further offset optimism the U.S. Fed will continue to aggressively
lower interest rates in the coming months. China is also falling as
the markets await potential fiscal stimulus announcements on
Saturday.
Following the data, Atlanta Fed President Raphael Bostic told
the Wall Street Journal he was "definitely open" to leaving
interest rates unchanged in November.
CME Group's FedWatch Tool is currently indicating an 84.0
percent chance the Fed will lower rates by 25 basis points next
month after slashing rates by 50 basis points last month.
Crude oil prices rose sharply as worries about escalating
tensions in the Middle East outweighed uncertainty about the
outlook for demand. West Texas Intermediate Crude oil futures for
November ended higher by $2.61 or about 3.56 percent at $75.85 a
barrel.
In the Asian trading today, the Australian dollar rose to a
4-day high of 1.6204 against the euro, from yesterday's closing
value of 1.6220. The aussie may test resistance around the 1.60
region.
Against the U.S. and the Canadian dollars, the aussie advanced
to a 2-day high of 0.6750 and a 1-week high of 0.9283 from
yesterday's closing quotes of 0.6739 and 0.9266, respectively. If
the aussie extends its uptrend, it is likely to find resistance
around 0.69 against the greenback and 0.94 against the loonie.
The aussie edged up to 100.39 against the yen, from Thursday's
closing value of 100.25. On the upside, 103.00 is seen as the next
resistance level for the aussie.
The NZ dollar rose to 2-day highs of 0.6106 against the euro and
1.7913 against the euro, from yesterday's closing quotes of 0.6092
and 1.7937, respectively. If the kiwi extends its uptrend, it is
likely to resistance around 0.63 against the greenback and 1.77
against the euro.
Against the Australia and the yen, the kiwi edged up to 1.1044
and 90.79 from Thursday's closing quotes of 1.1058 and 90.65,
respectively. The next possible upside target for the kiwi is seen
around 1.09 against the aussie and 93.00 against the yen.
Looking ahead, Canada jobs data for September, U.S. PPI for
September, U.S. University of Michigan's consumer sentiment for
October, U.S. WASDE report and U.S. weekly Baker Hughes oil rig
count data are slated for release in the New York session.
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