Commodity Currencies Advance Against Majors
June 23 2019 - 10:50PM
RTTF2
The commodity currencies such as the Australian, the New Zealand
and the Canadian dollars strengthened against their major
counterparts in the Asian session on Monday, as oil prices rose
after Secretary of State Mike Pompeo said the United States would
impose "significant" sanctions against Iran today following the
downing of a U.S. drone last week.
Pompeo on Sunday accused Iran of "selling" false information
concerning the attack on the U.S. drone over international
waters.
He asserted that the United States is ready to negotiate with
Iran with "no preconditions."
He told that the U.S. is planning to impose "significant set" of
new economic sanctions on Monday, but declined to offer more
details.
In economic news, figures from Reserve Bank of New Zealand
showed that New Zealand's credit card spending growth slowed in May
after rising in the previous month.
Credit card spending growth eased to 0.4 percent month-on-month
in May from 0.6 percent in April.
The loonie climbed to 1.3182 against the greenback, 1.5004
against the euro and 81.49 against the yen, from its early lows of
1.3216, 1.5032 and 81.17, respectively. The next possible
resistance for the loonie is seen around 1.30 against the
greenback, 1.48 against the euro and 83.00 against the yen.
Reversing from its early lows of 0.6929 against the greenback,
0.9155 against the loonie and 74.34 against the yen, the aussie
strengthened to near a 2-week high of 0.6961, 5-day high of 0.9181
and a 10-day high of 74.79, respectively. The aussie is likely to
challenge resistance around 0.72 against the greenback, 0.94
against the loonie and 76.00 against the yen.
The aussie edged higher to 1.6347 against the euro, following a
decline to 1.6412 at 11:45 pm ET. If the aussie rises further, 1.60
is likely seen as its next possible resistance level.
The kiwi appreciated to a 2-week high of 0.6615 against the
greenback and a 4-day high of 71.06 against the yen, off its early
lows of 0.6585 and 70.65, respectively. On the upside, 0.68 and
75.00 are possibly seen as the next resistance levels for the kiwi
against the greenback and the yen, respectively.
The NZ currency gained to 1.7208 against the euro and 1.0519
against the aussie, coming off from its early low of 1.7270 and a
6-day low of 1.0550, respectively. The currency may test resistance
around 1.68 against the euro and 1.03 against the aussie, if it
rises again.
Looking ahead, German Ifo business sentiment index for June is
due in the European session.
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