Commodity Currencies Rise On Strong Asian Shares
November 27 2023 - 9:52PM
RTTF2
Commodity currencies such as the Australia, the New Zealand and
the Canadian dollars strengthened against their major currencies in
the Asian session on Tuesday, as investors are trading mostly
higher, following the broadly negative cues from global markets
overnight. Traders seemed reluctant to make significant moves ahead
of the release of some key economic data in the coming days. Most
currencies in the region also strengthened against the U.S.
dollar.
Traders also were looking for additional clues about the outlook
for interest rates, with optimism the U.S. Fed is done raising
rates and might consider reducing them by the second half of 2024.
The U.S., European and Chinese PMIs, eurozone inflation data and
U.S. personal consumption numbers will be released this week.
Gains across most sectors, led by miners and technology stocks,
also turned up the investor sentiment.
In economic news, data from the Australian Bureau of Statistics
showed that the value of retail sales in Australia was down a
seasonally adjusted 0.2 percent on month in October, coming in at
A$35.767 billion. That missed expectations for an increase of 0.2
percent and was down from 0.9 percent in September.
On a yearly basis, retail sales rose 1.2 percent.
In the Asian trading today, the Australian dollar rose to a
3-week high of 1.6530 against the euro, from yesterday's closing
value of 1.6575. The aussie may test resistance around the 1.63
region.
Against the U.S. and the Canadian dollars, the aussie advanced
to nearly a 4-month high of 0.6632 and a 1-week high of 0.9021 from
yesterday's closing quotes of 0.6606 and 0.8994, respectively. If
the aussie extends its uptrend, it is likely to find resistance
around 0.69 against the greenback and 0.91 against the loonie.
The aussie edged up to 1.0855 against the NZ dollar, from
Monday's closing value of 1.0833. On the upside, 1.09 is seen as
the next resistance level for the aussie.
The NZ dollar rose to nearly a 4-month high of 0.6115 and nearly
a 1-month high of 1.7928 against the euro, from yesterday's closing
quotes of 0.6096 and 1.7962, respectively. If the kiwi extends its
uptrend, it is likely to find resistance around 0.62 against the
greenback and 1.76 against the euro.
The Canadian dollar rose to 2-day highs of 1.3593 against the
U.S. dollar and 1.4884 against the euro, from yesterday's closing
quotes of 1.3615 and 1.4913, respectively. If the loonie extends
its uptrend, it is likely to find resistance around 1.34 against
the greenback and 1.45 against the euro.
Looking ahead, the European Central Bank releases monetary
aggregates for October at 4:00 am ET in the European session. M3 is
forecast to fall 0.9 percent annually after declining 1.2 percent
in September.
In the New York session, U.S. house price index for September,
U.S. CB consumer Confidence for November and U.S. Richmond Fed
manufacturing index for November, are due to be released.
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