Commodity currencies such as the Australian, the New Zealand and the Canadian dollar strengthened against their major counterparts in the Asian session on Thursday, as some investors went bargain hunting following the release of better-than-expected Australian employment data for the month of October.
Data from the Australian Bureau of Statistics showed that the unemployment rate in Australia fell to a seasonally adjusted 5.9 percent in October. That handily beat forecasts for 6.2 percent, which would have been unchanged from the September reading.
The Australian economy added 58,600 jobs in October, blowing away forecasts for an increase of 15,000 jobs following the upwardly revised 800 decline in September. The participation rate climbed to 65.0 percent, ahead of forecasts of 64.9 percent, which would have been unchanged.
The robust Australian jobs data decreased the chance of RBA rate cut in the coming month’s policy meeting.
Meanwhile, crude oil prices rebounded, after tumbling 3 percent overnight on worries about higher crude inventories and China’s factory output growth easing. Crude oil for December delivery are currently up $0.25 to $43.18 a barrel.
In other economic news, data from Statistics New Zealand showed that food prices were down 1.2 percent on month in October, following the 0.5 percent decline in September.
Data from ANZ Bank and Roy Morgan showed that the ANZ-Roy Morgan consumer confidence index climbed notably to 122.7 in November to the highest level in six months, from 114.9 in October.
Monday, the NZ dollar rose 0.48 percent against the U.S. dollar, 0.29 percent against the yen and 0.26 percent against the euro.
The Australian and the Canadian dollars showed mixed performance against their major rivals. While the aussie and loonie rose against the U.S. dollar, they held steady against the euro. Meanwhile, against the yen, the loonie fell and the aussie held steady.
In the Asian trading, the Australian dollar rose to nearly a 3-month high of 1.5059 against the euro and a 1-month high of 1.0893 against the NZ dollar, from yesterday’s closing quotes of 1.5203 and 1.0759, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.48 against the euro and 1.10 against the kiwi.
Against the yen and the Canadian dollar, the aussie advanced to more than 2-week highs of 87.95 and 0.9469 from yesterday’s closing quotes of 86.74 and 0.9359, respectively. The aussie may test resistance near 90.00 against the yen and 0.96 against the loonie.
The aussie climbed to a 6-day high of 0.7154 against the U.S. dollar, from yesterday’s closing value of 0.7060. On the upside, 0.72 is seen as the next resistance level for the aussie.
The NZ dollar rose to 1.6364 against the euro, from an early 2-day low of 1.6428. The kiwi is likely to find resistance around the 1.60 area.
Against the U.S. dollar and the yen, the kiwi advanced to 0.6579 and 80.79 from early lows of 0.6557 and 80.54, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.68 against the greenback and 82.00 against the yen.
The Canadian dollar rose to a 6-day high of 1.3225 against the U.S. dollar, from yesterday’s closing value of 1.3258. The loonie may test resistance near the 1.30 region.
The loonie edged up to 92.97 against the yen, from yesterday’s closing value of 92.60. If the loonie extends its uptrend, it is likely to find resistance around the 93.50 area.
Against the euro, the loonie climbed to 1.4246 from an early 2-day low of 1.4273. On the upside, 1.40 is seen as the next resistance level for the loonie.
Meanwhile, safe have currencies such as the yen and the U.S. dollar fell against its major rivals.
In other economic news, the Cabinet Office said that core machine orders in Japan surged 7.5 percent on month in September. That topped forecasts for an increase of 3.3 percent following the 5.7 percent decline in August.
On a yearly basis, core machine orders dipped 1.7 percent, not worse as the 4.6 percent drop forecasts by economists.
The Bank of Japan said that producer prices in Japan were down 0.6 percent on month in October. That missed forecasts for a decline of 0.4 percent following the 0.6 percent contraction in September.
On a yearly basis, producer prices skidded 3.8 percent versus expectations for a decline of 3.5 percent following the 4.0 percent drop in the previous month.
In the Asian trading, the yen fell to a 1-week low of 187.51 against the pound, from yesterday’s closing value of 186.84. The yen may test support near the 191.00 region.
Against the euro and the Swiss franc, the yen dropped to 2-day lows of 132.54 and 122.70 from yesterday’s closing quotes of 131.93 and 122.25, respectively. If the yen extends its downtrend, it is likely to find support around 134.00 against the euro and 124.00 against the franc.
The yen edged down to 123.04 against the U.S. dollar, from yesterday’s closing value of 122.85. On the upside, 124.00 is seen as the next support level for the yen.
The U.S. dollar fell to a 1-week low of 1.5246 against the pound, from yesterday’s closing value of 1.5207. The greenback is likely to find support around the 1.55 area.
Against the euro and the Swiss franc, the greenback dropped to a 3-day low of 1.0780 and a 2-day low of 1.0025 from yesterday’s closing quotes of 1.0739 and 1.0044, respectively. If the greenback extends its downtrend, it is likely to find support around 1.10 against the euro and 0.99 against the franc.
Looking ahead, final German inflation figures for October is due to be released in the pre-European session at 2:00 am ET.
Eurozone industrial production for September is slated for release later in the day.
At 3:30 am ET, European Central Bank President Mario Draghi will testify on Monetary Policy before the Committee on Economic and Monetary Affairs in Brussels. Subsequently, at 5:30 am ET, Dragi is due to testify about his capacity as the Chairman of the European Systemic Risk Board (ESRB) at the European Parliament in Brussels.
In the New York session, Canada new house price index for September, U.S. weekly jobless claims for the week ended November 7 and U.S. crude oil inventory data are set to be announced.
At 9:30 am ET, Federal Reserve Chair Janet Yellen will deliver opening remarks at the Conference on Monetary Policy Implementation in the Post-Crisis Period in Washington DC.
At 10:15 am ET, Federal Reserve Bank of Chicago President Charles Evans will deliver a speech about the economic outlook and monetary policy at the National Communities Council’s Fall Leadership Forum in Chicago.
Bank of England Chief Economist Andy Haldane will speak at the Trades Union Congress in London, at 12:00 pm ET.
Shortly after, Federal Reserve Bank of New York President William Dudley is expected to speak about the economic outlook and monetary policy at the Economic Club of New York.
At 2:00 pm ET, U.S. budget statement for the month of October is set to be published.
The material has been provided by InstaForex Company – www.instaforex.com