Antipodean Currencies, Euro Strengthens Amid Risk Appetite
April 03 2024 - 11:10PM
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The antipodean currencies such as the Australia and the New
Zealand dollars, and the euro strengthened against their major
counterparts in the Asian session on Thursday, as Asian stock
markets traded higher, as traders reacted to the latest remarks
from U.S. Fed officials that helped ease recent concerns about the
outlook for interest rates. Fed Chair Jerome Powell reiterated
during remarks at Stanford University that the central bank is not
in a hurry to begin lowering interest rates, but reaffirmed his
view that they will likely cut interest rates this year.
Gains in gold miners, technology and financial stocks, also
improved the investor sentiment.
Crude oil prices climbed higher after OPEC ended its meeting
without making any changes to its production policy. West Texas
Intermediate Crude oil futures for May ended higher by $0.28 or
0.33 percent at $85.43 a barrel.
In economic news, the services sector in Australia continued to
expand in March, and at a faster pace, the latest survey from Judo
Bank revealed on Thursday with a services PMI score of 54.4. That's
up from 53.1 in February, and it moves further above the
boom-or-bust line of 50 that separates expansion from
contraction.
Meanwhile, the total number of building approvals issued in
Australia was down a seasonally adjusted 1.9 percent on month in
February, the Australian Bureau of Statistics said on Thursday -
coming in at 12,520. That missed expectations for an increase of
3.0 percent following the 1.0 percent drop in January. On a yearly
basis, overall approvals fell 5.8 percent. The value of total
building approved fell 16.5 percent, following a 14.5 percent
January increase.
Data from Statistics New Zealand showed that the total number of
building permits issued in New Zealand was up a seasonally adjusted
14,9 percent on month in February, coming in at 2,795. That follows
the 8.6 percent decline in January.
In the Asian trading today, the Australian dollar rose to nearly
a 4-week high of 1.6462 against the euro and a 9-day high of 0.8902
against the Canadian dollar, from yesterday's closing quotes of
1.6505 and 0.8877, respectively. If the aussie extends its uptrend,
it is likely to find resistance around 1.63 against the euro and
0.90 against the loonie.
Against the U.S. dollar and the yen, the aussie advanced to
2-week highs of 0.6588 and 99.92 from yesterday's closing quotes of
0.6563 and 99.55, respectively. The aussie may test resistance near
0.66 against the greenback and 100.00 against the yen.
The aussie edged up to 1.0928 against the NZ dollar, from
Wednesday's closing value of 1.0918. On the upside, 1.10 is seen as
the next resistance level for the aussie.
The NZ dollar rose to nearly a 2-week high of 1.7965 against the
euro, from yesterday's closing value of 1.8025. The kiwi is likely
to find its next support level around the 1.76 region.
Against the U.S. dollar and the yen, the kiwi advanced to near
2-week highs of 0.6038 and 91.55 from Wednesday's closing quotes of
0.6007 and 91.11, respectively. If the kiwi extends its uptrend, it
is likely to find resistance around 0.61 against the greenback and
93.00 against the yen.
The euro rose to a 9-day high of 1.0848 against the U.S. dollar
and an 8-day high of 164.53 against the yen, from yesterday's
closing quotes of 1.0835 and 164.35, respectively. If the euro
extends its uptrend, it is likely to find resistance around 1.10
against the greenback and 166.00 against the yen.
Against the pound and the Swiss franc, the euro edged up to
0.8572 and 0.9801 from Wednesday's closing quotes of 0.8562 and
0.9783, respectively. The euro may test resistance near 0.86
against the pound and 0.99 against the franc.
Looking ahead, PMI reports from various European economies and
U.K. for March, Eurozone PPI for February, are due to be released
in the European session.
At 7:30 am ET, the ECB is set to publish the account of the
monetary policy meeting of the Governing Council held on March 6
and 7.
In the New York session, U.S. weekly jobless data and U.S. and
Canada trade data for February are slated for release.
At 12:15 pm ET, Federal Reserve Bank of Richmond President
Thomas Barkin will give a new speech on the economic outlook before
the Home Building Association of Richmond, in Richmond, U.S.
Half-an-hour later, Federal Reserve Bank of Chicago President
Austan Goolsbee will participate in a moderated question-and-answer
session before the Multi-Chamber Economic Outlook Luncheon and Expo
, in Oak Brook, U.S.
At 2:00 pm ET, Federal Reserve Bank of Cleveland President
Loretta Mester will participate in a conversation on the economic
outlook before virtual Global Interdependence Center Executive
Briefing, in Cleveland, U.S.
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