Antipodean Currencies Rise Amid Risk Appetite
16 May 2024 - 12:54PM
RTTF2
The Antipodean currencies such as the Australia and the New
Zealand dollars strengthened against their major currencies in the
Asian session on Thursday amid risl appetite, as traders reacted
positively to a closely watched report on U.S. consumer price
inflation that showed a smaller-than-expected increase in the month
of April to reinforce expectations the U.S. Fed will begin cutting
interest rates in September.
Gains across most sectors led by gold miners and technology
stocks, also led to the upturn of investor sentiment.
Crude oil prices traded higher, buoyed by soft inflation data
and a report showing a bigger than expected drop in U.S. crude
inventories last week. West Texas Intermediate Crude oil futures
for June ended up by $0.61 or 0.78 percent at $78.63 a barrel.
In economic news, data from Australian Bureau of Statistics
showed that the Australian economy had created 38,500 jobs in
April, against a 23,700 forecast.
In the Asian trading now, the Australian dollar rose to a 9-day
high of 1.6223 against the euro, from yesterday's closing value of
1.6254. The aussie may test resistance around the 1.61 region.
Against the Canada and the U.S. dollars, the aussie advanced to
more than a 1-year high of 0.9126 and more than a 4-month high of
0.6715 from Wednesday's closing quotes of 0.9111 and 0.6700,
respectively. If the aussie extends its uptrend, it is likely to
find resistance around 0.92 against the loonie and 0.68 against the
greenback.
The NZ dollar rose to more than 2-month highs of 0.6141 against
the U.S. dollar and 1.7738 against the euro, from yesterday's
closing quotes of 0.6129 and 1.7766, respectively. The kiwi is
likely to find resistance around 0.63 against the greenback and
1.74 against the euro.
Against the Australian dollar, the kiwi advanced to more than a
3-week high of 1.0915 from Wednesday's closing value of 1.0931. If
the kiwi extends its uptrend, it is likely to find resistance
around the 1.08 area. Also, the Canadian dollar rose to more than a
1-month high of 1.3590 against the U.S. dollar, from yesterday's
closing value of 1.3598. The loonie may test resistance around the
1.33 region.
Looking ahead, U.S. building permits for April, weekly jobless
claims data, housing starts for April, U.S. Philadelphia Fed
manufacturing index for May, U.S. export and import prices for
April and industrial production for April are slated for release in
the New York session.
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