Commodity Currencies Rise As Asian Shares Traded Higher
October 05 2023 - 11:13PM
RTTF2
Commodity currencies such as the Australia, the New Zealand and
the Canadian dollars strengthened against other major currencies in
the Asian session on Friday amid risk appetite, as traders
continued to take advantage of the recent slump in the markets as
they picked up stocks at reduced levels, even as concerns remain
about interest rates and the outlook for global economic
growth.
Traders are looking ahead to the release of the closely watched
U.S. monthly employment data for September later in the day for
further cues.
In the Asian trading now, the Australian dollar rose to a 4-day
high of 0.6382 against the U.S. dollar and a 3-day high of 94.86
against the yen, from yesterday's closing quotes of 0.6369 and
94.58, respectively. If the aussie extends its uptrend, it is
likely to find resistance around 0.65 against the greenback and
97.00 against the yen.
The aussie advanced to 1.6527 against the euro, from Thursday's
closing value of 1.6556. The aussie may test resistance around the
1.62 region.
Against the Canada and the New Zealand dollars, the aussie edged
up to 0.8746 and 1.0694 from yesterday's closing quotes of 0.8728
and 1.0672, respectively. On the upside, 0.88 against the loonie
and 1.08 against the kiwi are seen as the next resistance levels
for the aussie.
The NZ dollar rose to a 4-day high of 0.5970 against the U.S.
dollar, from an early low of 0.5954. The next possible resistance
level for the aussie is seen around the 0.61 region.
Against the yen and the euro, the kiwi advanced to 3-day highs
of 88.73 and 1.7660 from yesterday's closing quotes of 88.57 and
1.7674, respectively. If the kiwi extends its uptrend, it is likely
to find resistance around 91.00 against the yen and 1.75 against
the euro.
The Canadian dollar rose to 1.3703 against the U.S. dollar, from
an early low of 1.3726. On the upside, 1.34 is seen as the next
resistance level for the loonie.
Against the yen and the euro, the loonie edged up to 108.50 and
1.4448 from Thursday's closing quotes of 108.33 and 1.4455,
respectively. If the loonie extends its uptrend, it is likely to
find resistance around 110.00 against the yen and 1.41 against the
euro.
Meanwhile, the safe-haven currency yen weakened against its
major rivals as Asian stock markets traded higher.
In economic news, data from the Ministry of Internal Affairs and
Communications showed that the average of household spending was
down 2.5 percent on year in August, coming in at 293,161 yen. That
beat expectations for a decline of 4.3 percent following the 5.0
percent decline in July.
On a monthly basis, household spending jumped 3.9 percent, again
topping forecasts for a gain of 0.9 percent following the 2.7
percent fall in the previous month. The average of monthly income
per household stood at 544,043 yen, down 6.9 percent on year.
The yen fell to 3-day lows of 156.94 against the euro and 163.01
against the Swiss franc, from yesterday's closing quotes of 156.64
and 162.74, respectively. If the yen extends its downtrend, it is
likely to find support around 160.00 against the euro and 165.00
against the franc.
Against the pound, the yen dropped to a 2-day low of 181.29 from
Thursday's closing value of 181.02. The yen may test support near
the 184.00 region.
The yen edged down to 148.96 against the U.S. dollar, from
yesterday's closing value of 148.50. On the downside, 151.00 is
seen as the next support level for the yen.
Looking ahead, U.K. BBA mortgage rate for September is slated
for release at 6:00 am ET in the European session.
In the New York session, U.S. and Canada jobs data for
September, U.S. used car prices for September and U.S. Baker Hughes
oil rig count data are due to be released.
At 12:00 am ET, U.S. Federal Reserve Board Governor Christopher
Waller will deliver a speech on "Payments" before the Brookings
Institution "Making America's Payment System Work for a Digital
Currency" event, in Washington D.C., U.S.
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