Australian, NZ Dollars Strengthen On Improved Risk Sentiment
The Australian and New Zealand dollars climbed against their
major counterparts in the Asian session on Thursday amid an
improvement in risk sentiment, as investors assessed that U.S.
inflation data is unlikely to change the Fed's outlook on interest
Overnight data showed that a spike in consumer prices to 7
percent year-on-year in December matched forecasts.
Lael Brainard, Joe Biden's nominee for Vice Chair of the Federal
Reserve, will testify before the Senate Banking Committee at 10 am
In her prepared remarks for testimony, Brainard said that the
monetary policy is focused on getting inflation back down to 2
percent while sustaining a broad-based recovery.
Meanwhile, oil prices fell on concerns over the impact of the
omicron COVID-19 variant in the near future.
The aussie appreciated to 0.7292 against the greenback and
1.5692 against the euro, off its early lows of 0.7273 and 1.5728,
respectively. The currency may possibly challenge resistance around
0.75 against the greenback and 1.54 against the euro.
The aussie rebounded to 83.55 against the yen and 0.9112 against
the loonie, after declining to 83.35 and 0.9098, respectively in
early trades. The next possible resistance for the aussie is seen
around 86.00 against the yen and 0.92 against the loonie.
The kiwi was trading at 78.69 against the yen, up from
yesterday's close of 78.49. If the kiwi rises further, 80.00 is
likely seen as its next resistance level.
The kiwi reversed from its prior lows of 0.6836 against the
greenback and 1.6717 against the euro, advancing to a fresh 6-week
high of 0.6863 and a 1-week high of 1.6676, respectively. The kiwi
is poised to face resistance around 0.70 against the greenback and
1.65 against the euro.
The kiwi held steady against the aussie, after having climbed to
1.0618 at 7:45 pm ET. On the upside, 1.05 is likely seen as its
next resistance level.
Looking ahead, U.S. producer price index for December and weekly
jobless claims for the week ended January 8 will be published in
the New York session.
Federal Reserve Governor Lael Brainard will testify on the
nomination of Vice Chair of the Federal Reserve Board of Governors
before the Senate Banking Committee in Washington DC at 10 am
AUD vs CAD (FX:AUDCAD)
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