Australian, NZ Dollars Advance As Lagarde Nominated As ECB Chief
July 03 2019 - 1:39AM
RTTF2
The Australian and the New Zealand dollars climbed against their
major counterparts in the European session on Wednesday, as the
nomination of IMF Managing Director Christine Lagarde as the next
President of the European Central Bank fueled risk appetite.
Lagarde is expected to be broadly dovish on monetary policy
while pressing fiscal authorities to play a more active role in
promoting growth.
Lagarde would succeed Mario Draghi when his term expires at the
end of October.
Data from the Australian Bureau of Statistics showed that
Australia's trade surplus increased more than expected in May on
higher exports.
The trade surplus rose to a seasonally adjusted A$5.74 billion
in May from A$4.82 billion in April. Economists had forecast the
surplus to rise to A$5.25 billion.
Survey from the Australian Industry Group showed that Australia
Service Sector continued to expand in June, albeit at a slower
pace, with a Performance of Service Index score of 52.2.
That's down from 52.5 in May, although it remains above the
boom-or-bust line of 50 that separates expansion from
contraction.
The aussie and the kiwi showed mixed trading against their major
counterparts in the Asian session. The kiwi rose against the
greenback and the euro, but fell against the yen.
The aussie weakened against the yen and the kiwi, while it held
steady against the greenback. Against the euro, it advanced.
The aussie strengthened to 2-day highs of 0.7016 against the
greenback and 0.9193 against the loonie, from its early lows of
0.6986 and 0.9152, respectively. The next possible resistance for
the aussie is seen around 0.73 against the greenback and 0.935
against the loonie.
Reversing from its early low of 1.0459 against the kiwi and a
weekly low of 75.13 against the yen, the aussie edged higher to
1.0491 and 75.58, respectively. On the upside, 1.06 and 77.5 are
likely seen as the next resistance levels for the aussie against
the kiwi and the yen, respectively.
The aussie firmed to near a 4-week high of 1.6088 against the
euro, following a decline to 1.6166 at 9:15 pm ET. If the aussie
continues its rise, 1.57 is possibly seen as its next resistance
level.
Simultaneously, the kiwi appreciated to a 2-day high of 0.6692
against the greenback and a 2-month high of 1.6864 against the
euro, reversing from its previous lows of 0.6667 and 1.6922,
respectively. Next key resistance for the kiwi is likely seen
around 0.68 against the greenback and 1.66 against the euro.
The kiwi advanced to 72.08 against the yen, from a weekly low of
71.78 seen at 9:30 pm ET. On the upside, 76.00 is likely seen as
the next resistance level for the currency.
Looking ahead, at 8:15 am ET, ADP private payrolls for June will
be released.
In the New York session, U.S. and Canadian trade data for May,
U.S. weekly jobless claims for the week ended June 29, factory
orders for May and ISM non-manufacturing composite index for June
will be out.
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