Australian, NZ Dollars Advance On Improved Sentiment
August 19 2020 - 01:45AM
RTTF2
The Australian and NZ dollars gained ground against their major
counterparts in the European session on Wednesday, as European
shares rose ahead of minutes from the Federal Reserve's recent
meeting due later in the day.
The Fed took no action in July but noted that economic
indicators suggest the recovery lost some steam due to the surge in
infections.
The minutes may provide more clues about an anticipated shift in
the monetary policy outlook.
Data from Westpac showed that Australia's leading index remained
in deep negative territory in July but the index appeared to have
bottomed out in April.
The six-month annualized growth rate in the Westpac Melbourne
Institute Leading Index, which indicates the likely pace of
economic activity relative to trend three to nine months into the
future, rose to -4.37 percent in July from -4.43 percent in
June.
Data from Statistics New Zealand showed that New Zealand output
producer prices fell 0.3 percent on quarter, following the 0.1
percent increase in the previous three months.
Input producer prices sank 1.0 percent on quarter after dipping
0.3 percent in the three months prior.
The aussie climbed to 0.7276 against the greenback, its
strongest level since January 2019. If the aussie rises further, it
may find resistance around the 0.75 region.
Reversing from its early lows of 76.20 against the yen and
1.6497 against the euro, the aussie approached a 2-day high of
76.68 and an 8-day high of 1.6418, respectively. The next possible
resistance for the aussie is seen around 78.00 against the yen and
1.62 against the euro.
The aussie advanced to an 8-day high of 0.9561 against the
loonie, after falling to 0.9523 at 12:30 am ET. The aussie may
locate resistance near the 0.98 area.
The kiwi rose to a 6-day high of 1.7961 against the euro and
near a 2-week high of 0.6649 against the greenback, off its early
lows of 1.8092 and 0.6600, respectively. The kiwi is seen finding
resistance around 1.73 against the euro and 0.68 against the
greenback.
The NZ currency appreciated to 5-day highs of 70.05 against the
yen and 1.0935 against the aussie, following its declines to 69.43
and 1.0981, respectively. The kiwi is poised to find resistance
around 72.00 against the yen and 1.06 against the aussie.
Looking ahead, Canada CPI for July and wholesale sales for June
are set for release in the New York session.
At 2:00 pm ET, the Fed minutes from the July meeting will be
released.
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