Antipodean currencies such as the Australian and the New Zealand dollars strengthened against their major counterparts in the Asian session on Wednesday amid risk appetite following the overnight rally on Wall Street and another surge in crude oil prices. The gain in crude oil prices have eased worries about a global economic slowdown and boosted risk appetite. Expectations of fresh stimulus from central banks have also lifted investor sentiment.
Also, the Antipodean currencies began rising after data showed that the Australian GDP expanded more-than-expected in the fourth quarter of 2015.
Data from the Australian Bureau of Statistics showed that Australia’s gross domestic product expanded a seasonally adjusted 0.6 percent on quarter in the fourth quarter of 2015. That beat forecasts for an increase of 0.4 percent, and slowed from the upwardly revised 1.1 percent gain in the third quarter.
On a yearly basis, GDP jumped 3.0 percent, also topping expectations for a 2.5 percent increase and up from the upwardly revised 2.7 percent increase in the three months prior.
Tuesday,the Australian and the New Zealand dollars rose against their major rivals.
The Australian dollar rose after the nation’s central bank retained its record interest rate for the ninth straight meeting, as widely expected by economists. The Australian dollar rose 0.33 percent against the U.S. dollar, 0.92 percent against the yen and 0.53 percent against the euro.
Meanwhile, the New Zealand dollar rose 0.28 percent against the U.S. dollar, 0.73 percent against the yen and 0.72 percent against the euro.
In the Asian trading, the Australian dollar rose to a 1-month high of 1.0901 against the NZ dollar, from yesterday’s closing value of 1.0814. The aussie may test resistance near the 1.09 region.
Against the U.S. and the Canadian dollars, the aussie advanced to a 5-day high of 0.7236 and a 2-day high of 0.9713, from yesterday’s closing quotes of 0.7174 and 0.9616, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.73 against the greenback and 0.99 against the loonie.
The aussie climbed to nearly a 2-month high of 1.5015 against the euro and nearly a 1-month high of 82.56 against the yen, from yesterday’s closing quotes of 1.5141 and 81.77, respectively. On the upside, 1.48 against the euro and 86.00 against the yen are seen as the next resistance level for the aussie.
The NZ dollar rose to 5-day highs of 0.6661 against the U.S. dollar and 75.92 against the yen, from yesterday’s closing quotes of 0.6621 and 75.49, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.68 against the greenback and 78.00 against the yen.
Against the euro, the kiwi advanced to a 5-day high of 1.6322 from yesterday’s closing value of 1.6376. The kiwi may test resistance around the 1.61 area.
Looking ahead, Swiss GDP data for the fourth quarter is due to be released in the pre-European session at 1:45 am ET.
U.K. construction PMI data for February and Eurozone PPI for January are slated for release later in the day.
At 3:30 am ET, European Central Bank board member Benoit Coeure is expected to speak about, “The Future of the Finance Industry – Between Tradition and Innovation” at the SZ Finance Day 2016 in Frankfurt.
At 5:00 am ET, Bank of England Deputy Governor Ben Broadbent is scheduled to speak at the London School of Economics.
In the New York session, U.S. ADP private sector jobs data for February is set to be announced.
Bank of England Deputy Governor Jon Cunliffe will testify about the economics of the United Kingdom’s housing market before the Lords Committee in London at 9:00 am ET.
At 10:00 am ET, Federal Reserve Bank of San Francisco President John Williams is expected to speak on the economic outlook before the Bishop Ranch Forum in California.
Subsequently, European Central Bank board member Benoit Coeure will speak to the European Parliament in Brussels.
At 2:00 pm ET, Federal Reserve will issue the Beige Book of economic condition in Washington D.C.
The material has been provided by InstaForex Company – www.instaforex.com