Antipodean currencies such as the Australian and the New Zealand dollars continued to be strong against their major counterparts in the Asian session on Friday amid risk appetite, following the surge in crude oil prices. Investors will also focus on the two-day G20 meeting starting in Shanghai today.
Crude oil prices rebounded Thursday on reports that OPEC and non-OPEC oil ministers will meet next month to discuss freezing production.
Meanwhile, the New Zealand dollar began rising after data showed that the nation had an unexpected trade surplus in January.
Data from Statistics New Zealand showed that New Zealand had a merchandise trade surplus of NZ$8.1 billion in January. That beat forecasts for a deficit of NZ$271 million following the NZ$53 million shortfall in December.
Exports climbed 5.9 percent on year to NZ$3.90 billion, exceeding expectations for NZ$3.71 billion although down from NZ$4.48 billion in the previous month. Imports jumped an annual 7.2 percent to NZ$3.89 billion versus forecasts for NZ$3.95 billion and down from NZ$4.48 billion a month earlier.
Thursday,the Australian and the New Zealand dollars rose against its major rivals. The Australian dollar rose 0.41 percent against the U.S. dollar, 1.18 percent against the yen and 0.49 percent against the euro. The NZ dollar rose 1.12 percent against the U.S. dollar, 1.63 percent against the yen and 0.90 percent against the euro.
In the Asian trading, the Australian dollar rose to a 4-day high of 82.02 against the yen, from yesterday’s closing value of 81.75. The aussie may test resistance near the 84.00 region.
Against the euro and the U.S. dollar, the aussie advanced to 3-day highs of 1.5214 and 0.7256 from yesterday’s closing quotes of 1.5221 and 0.7235, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.51 against the euro and 0.73 against the greenback.
The aussie edged up to 0.9822 against the Canadian dollar, from an early 1-week low of 0.9776. On the upside, 1.00 is seen as the next resistance level for the aussie.
The NZ dollar rose to near 2-month highs of 1.6306 against the euro and 0.6775 against the U.S. dollar, from yesterday’s closing quotes of 1.6379 and 0.6720, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 1.61 against the euro and 0.69 against the greenback.
Against the yen and the Australian dollar, the kiwi advanced to more than a 2-week high of 76.60 and a 2-week high of 1.0703 from yesterday’s closing quotes of 75.93 and 1.0757, respectively. The kiwi is likely to find resistance around 78.00 against the yen and 1.05 against the aussie.
Meanwhile, the safe-haven yen fell against its major rivals amid rising risk appetite.
Data from the Ministry of Internal Affairs and Communications showed that overall nationwide consumer prices in Japan were flat on a yearly basis in January. That was in line with forecasts and down from 0.2 percent in December. Core CPI also was flat, matching forecasts and down from 0.1 percent in the previous month.
The yen fell to an 8-day low of 114.45 against the Swiss franc and a 3-day low of 158.18 against the pound, from yesterday’s closing quotes of 114.06 and 157.73, respectively. If the yen extends its downtrend, it is likely to find support around 116.00 against the franc and 163.00 against the pound.
Against the euro and the U.S. dollar, the yen dropped to 4-day lows of 125.01 and 113.22 from yesterday’s closing quotes of 124.49 and 112.99, respectively. The yen may test support near 128.00 against the euro and 116.00 against the greenback.
Looking ahead, Eurozone economic sentiment index for February is due to be released at 5:00 am ET.
In the New York session, German preliminary CPI data for February, U.S. advance goods trade balance for January, the second estimate of U.S. GDP data for the fourth quarter, U.S. personal income and spending data for January, U.S. University of Michigan’s final consumer sentiment index for February and U.S. Baker Hughes rig count data are slated for release.
At 10:15 am ET, Federal Reserve Board Governors Jerome Powell and Lael Brainard participates in panel discussion before the 2016 U.S. Monetary Policy Forum, in New York.
At 1:30 pm ET, European Central Bank chief economist Peter Praet is expected to participate in a panel discussion at the “U.S. Monetary Policy Forum “, in New York.
The material has been provided by InstaForex Company – www.instaforex.com