Australian, NZ Dollars Higher On Improved Risk Sentiment
December 28 2022 - 06:12AM
RTTF2
The Australian and NZ dollars climbed against their major
counterparts in the European session on Wednesday, as China's move
to drop more COVID-19 restrictions fuelled hopes for a rebound in
the economic growth.
China decided to scrap containment measures for inbound
travellers earlier this week, in a step towards reopening the
economy.
Investors hope that the reopening of China's economy will prop
up global economic growth.
Hong Kong eased more COVID restrictions, removing mandatory PCR
tests for inbound travelers and the vaccine pass system to enter
certain venues.
Hong Kong will also remove the rule that restricts public
gatherings to 12.
The aussie climbed to near 2-week highs of 0.6801 against the
greenback and 1.5653 against the euro, from its early lows of
0.6719 and 1.5815, respectively. The aussie is seen facing
resistance around 0.70 against the greenback and 1.55 against the
euro.
The aussie advanced to an 8-day high of 90.89 against the yen
and a 6-day high of 0.9178 against the loonie, up from an early low
of 89.71 and a 5-day low of 0.9084, respectively. The currency is
likely to challenge resistance around 93.00 against the yen and
0.93 against the loonie.
The kiwi appreciated to 8-day highs of 84.85 against the yen and
0.6355 against the greenback, following a previous low of 83.67 and
a 2-day low of 0.6258, respectively. The kiwi may challenge
resistance around 86.00 against the yen and 0.66 against the
greenback.
The kiwi touched a 1-week high of 1.6763 against the euro, off
an early multi-week low of 1.6996. Should the kiwi strengthens
further, it is likely to test resistance around the 1.66 level.
The kiwi recovered to 1.0698 against the aussie, after falling
to near a 4-week low of 1.0765 in early deals. The kiwi may find
resistance around the 1.045 region, if it rallies again.
NZD vs US Dollar (FX:NZDUSD)
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