Australian, NZ Dollars Advance On PBoC's Assurance
April 26 2022 - 12:49AM
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The Australian and NZ dollars climbed against their major
counterparts in the late Asian session on Tuesday, as risk
sentiment improved after China's central bank promised to increase
support for the real economy as a virus crisis stoked growth
concerns.
"The PBOC will step up the prudent monetary policy's support to
the real economy, especially for industries and small businesses
hit hard by the pandemic," according to a statement published by
the bank.
On Monday, the central bank reduced the reserve requirement
ratio by 100 basis points to 8 percent in a bid to support
liquidity.
China's economic outlook is clouded by a renewed rise in
Covid-19 cases and lockdowns to contain the outbreak.
In Beijing, authorities decided to expand its Covid-19 mass
testing from one district to another 10 districts.
The aussie edged up to 0.7229 against the greenback, 92.59
against the yen and 0.9185 against the loonie, off its early lows
of 0.7169, 91.44 and 0.9133, respectively. The aussie is poised to
face resistance around 0.74 against the greenback, 94.00 against
the yen and 0.93 against the loonie.
The aussie was up against the euro, at a 4-day high of 1.4843.
On the upside, 1.45 is likely seen as its next resistance
level.
The kiwi rose to 4-day highs of 0.6645 against the greenback and
1.6112 against the euro, following its prior lows of 0.6609 and
1.6210, respectively. The currency may possibly challenge
resistance around 0.685 against the greenback and 1.58 against the
euro.
The kiwi gained to 85.14 against the yen, from an early low of
84.27. If the kiwi rises further, 87.00 is likely seen as its next
resistance level.
The kiwi recovered to 1.0840 against the aussie, reversing from
an early low of 1.0883. The next possible resistance for the kiwi
is seen around the 1.06 level.
Looking ahead, Canada manufacturing sales for March, U.S.
consumer confidence index for April, FHFA's house price index and
S&P/Case-Shiller home price index for February, durable goods
orders and new home sales for March will be out in the New York
session.
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