Antipodean Currencies Rises As Asian Shares Traded Higher
February 01 2024 - 9:57PM
RTTF2
The Antipodean currencies such as the Australia and the New
Zealand dollars strengthened against other major currencies in the
Asian session on Friday, after Asian stock markets traded higher,
following the broadly positive cues from Wall Street overnight,
with the markets rebounding as investors shrugged off the U.S.
Fed's indication that an interest rate cut in March is unlikely
after a sell-off on Wednesday. Markets in South Korea, Hong Kong,
Singapore and Australia were up well above 1 percent.
In economic news, the value of owner-occupied home loans in
Australia was down a seasonally adjusted 5.6 percent on month in
December, the Australian Bureau of Statistics said on Friday -
coming in at A$16.77 billion. That followed the 0.5 percent
increase in November. Overall home loans slipped 4.1 percent on
month to A$26.27 billion. On a yearly basis, owner-occupied loans
rose 7.4 percent, investment lending surged 20.4 percent and
overall lending was up 11.7 percent.
The ABS also said producer prices in Australia were up 0.9
percent on quarter in the fourth quarter of 2023, the Australian
Bureau of Statistics said on Friday. That was shy of expectations
for an increase of 1.9 percent following the 1.8 percent gain in
the previous three months. On a yearly basis, producer prices
climbed 4.1 percent, roughly in line with forecasts and up from 3.8
percent in the third quarter.
In the Asian trading today, the Australian dollar rose to a
2-day high of 0.6600 against the U.S. dollar, from yesterday's
closing value of 0.6569. The aussie may test resistance near the
0.68 region.
Against the yen and the euro, the aussie advanced to 96.64 and
1.6481 from Thursday's closing quotes of 96.21 and 1.6537,
respectively. If the aussie extends its uptrend, it is likely to
find resistance around 98.00 against the yen and 1.62 against the
euro.
Against the Canada and the New Zealand dollars, the aussie edged
up to 0.8824 and 1.0726 from yesterday's closing quotes of 0.8795
and 1.0695, respectively. On the upside, 0.90 against the loonie
and 1.08 against the kiwi are seen as the next resistance level for
the aussie.
The NZ dollar rose to 2-day highs of 0.6158 against the U.S.
dollar and 90.11 against the yen, from yesterday's closing quotes
of 0.6143 and 89.94, respectively. If the kiwi extends its uptrend,
it is likely to find resistance around 0.63 against the greenback
and 92.00 against the yen.
Against the euro, the kiwi edged up to 1.7667 from Thursday's
closing value of 89.94. The next possible upside target for the
kiwi is seen around the 1.74 region.
Meanwhile, the safe-haven assets such as the U.S. dollar and the
yen fell against their major rivals as Asian shares traded
higher.
The U.S. dollar fell to 2-day lows of 1.0883 against the euro
and 0.8565 against the Swiss franc, from yesterday's closing quotes
of 1.0872 and 0.8574, respectively. If the greenback extends its
downtrend, it is likely to 1.10 find euro and 0.83 against the
franc.
Against the pound and the Canadian dollar, the greenback edged
down to 1.2756 and 1.3370 from Thursday's closing quotes of 1.2742
and 1.3384, respectively. On the downside, 1.28 against the pound
and 1.32 against the loonie are seen as the next support level for
the greenback. .
The yen fell to 2-day lows of 159.41 against the euro, 186.81
against the pound and 170.91 against the Swiss franc, from
yesterday's closing quotes of 159.15, 186.56 and 170.66,
respectively. If the yen extends its downtrend, it is likely to
find support around 163.00 against the euro, 190.00 against the
pound and 173.00 against the franc.
Against the U.S. dollar, the yen edged down to 146.52 from
yesterday's closing values of 146.42. On the downside, 148.00 is
seen as the next support level for the greenback.
The yen slipped to a 2-day low of 109.55 against the Canadian
dollar, from Thursday's closing value of 109.36. The next possible
downside target for the yen is seen around the 111.00 region.
Looking ahead, U.S. unemployment rate for January, U.S.
University of Michigan's consumer sentiment for January, U.S.
factory orders for December and U.S. Baker Hughes oil rig count
data.
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