Commodity Currencies Gain Amid Risk Appetite
25 January 2016 - 12:40PM
RTTF2
Commodity currencies such as the Australian, the New Zealand and
the Canadian dollars strengthened against their major counterparts
in the Asian session on Monday, as Asian stocks extended its rally
and crude oil prices surged up. Expectations of more stimulus from
central banks also lifted investor sentiment.
Crude oil for March delivery is currently up $0.17 to $32.36 a
barrel. Harsh winter weather on the U.S. East coast triggered the
demand of U.S. crude oil.
Friday, the Australian, the New Zealand and the Canadian dollars
traded higher, as the rebound in crude oil prices and expectations
of more stimulus from the European Central Bank boosted investor
sentiment.
The Australian dollar rose 0.41 percent against the U.S. dollar,
1.06 percent against the yen and 0.77 percent against the euro. The
NZ dollar rose 0.16 percent against the yen and 0.05 percent
against the euro. The Canadian dollar rose 1.04 percent against the
U.S. dollar, 1.69 percent against the yen and 1.70 percent against
the euro. Meanwhile, the NZ dollar held steady against the U.S.
dollar.
In the Asian trading, the Australian dollar rose to 0.7009
against the U.S. dollar, from an early 4-day low of 0.6981. The
aussie may tests resistance near the 0.71 region.
Against the yen, the euro and the Canadian dollar, the aussie
edged up to 83.31, 1.5411 and 0.9914 from early lows of 82.75,
1.5487 and 0.9884, respectively. If the aussie extends its uptrend,
it is likely to find resistance around 85.00 against the yen, 1.51
against the euro and 1.01 against the loonie.
The NZ dollar rose to 0.6503 against the U.S. dollar, from an
early 4-day low of 0.6462. The kiwi is likely to find resistance
around the 0.66 area.
The kiwi advanced to nearly a 2-week high of 77.57 against the
yen, from an early low of 76.64. The next possible upside target of
the kiwi-yen pair is seen around the 79.00 area.
Against the euro, the kiwi advanced to 1.6605 from an early low
of 1.6705. If the kiwi extends its uptrend, it is likely to find
resistance around the 1.64 region.
The kiwi edged up to 1.0764 against the Australian dollar, from
an early low of 1.0816. On the upside, 1.06 is seen as the next
resistance level for the kiwi.
The Canadian dollar rose to 1.5264 against the euro, from an
early low of 1.5315. The loonie is likely to find resistance around
the 1.50 area.
Against the U.S. dollar and the yen, the loonie edged up to
1.4130 and 84.06 from early lows of 1.4169 and 83.65, respectively.
If the loonie extends its uptrend, it is likely to find resistance
around 1.40 against the greenback and 87.00 against the yen.
Meanwhile, the safe-haven yen weakened against its major rivals
amid risk appetite.
Data from the Ministry of Finance showed that Japan posted a
merchandise trade surplus of 140.28 billion yen in December. That
beat forecasts for a surplus of 117.0 billion yen following the
381.3 billion yen deficit in November.
Exports were down 8.0 percent on year to 6.337 trillion yen,
missing forecasts for a decline of 7.0 percent following the 3.3
percent contraction in the previous month. Imports tumbled an
annual 18.0 percent to 6.197 trillion yen versus expectations for a
fall of 16.4 percent following the 10.2 percent drop a month
earlier.
The yen fell to a 6-day low of 128.49 against the euro, from
Friday's closing value of 128.19. On the downside, 130.00 is seen
as the next support level for the yen.
Against the pound, the U.S. dollar and the Swiss franc, the yen
edged down to 170.00, 118.85 and 117.14 from last week's closing
quotes of 169.40, 118.74 and 116.85, respectively. If the yen
extends its downtrend, it is likely to find support around 173.00
against the pound, 119.00 against the greenback and 119.00 against
the franc.
Looking ahead, the German Ifo business climate index for January
is due to be released at 4:00 am ET.
At 1:00 pm ET, European Central Bank President Mario Draghi is
scheduled to speak at the Deutsche Borse New Year's reception, in
Frankfurt.
The New Zealand markets are closed in observance of Wellington
Anniversary day holiday.
US Dollar vs RUB (FX:USDRUB)
Forex Chart
From Apr 2024 to May 2024
US Dollar vs RUB (FX:USDRUB)
Forex Chart
From May 2023 to May 2024