Antipodean Currencies Rise Ahead Of Yellen's Jackson Hole Address
August 24 2016 - 9:17PM
RTTF2
Antipodean currencies such as the Australian and the New Zealand
dollars strengthened against their major counterparts in the Asian
session on Thursday, as investors treaded cautiously ahead of the
U.S. Federal Reserve's annual symposium in Jackson Hole, Wyoming,
that starts later in the day.
Federal Reserve Chair Janet Yellen will speak on Friday at the
symposium and investors will keep a close eye on her remarks for
clues about the outlook for U.S. interest rates.
Meanwhile, the kiwi rose earlier following news that New Zealand
dairy giant Fonterra raised its forecast payout to its 10,500
farmer shareholders.
The forecast earnings per share range for the 2017 financial
year has risen from 50 to 60 cents, the total payout available to
farmers is estimated at $5.25 to $5.35 per kilo.
Wednesday, the Australian dollar fell 0.02 percent against the
U.S. dollar, 0.18 percent against the yen and 0.16 percent against
the euro.
Meanwhile, the NZ dollar showed mixed trading against its major
rivals. While the kiwi rose against the euro and the yen, it held
steady against the U.S. dollar.
In the Asian trading, the Australian dollar rose to a 3-day high
of 76.68 against the yen, from yesterday's closing value of 76.46.
The aussie is likely to find resistance around the 79.00 area.
Data from the Bank of Japan showed that producer prices in Japan
were up 0.4 percent on year in July. That beat expectations for an
increase of 0.1 percent following the 0.2 percent gain in June. On
a monthly basis, prices also jumped 0.4 percent following the flat
reading in the previous month.
Against the U.S. dollar, the euro and the Canadian dollar, the
aussie advanced to 0.7632, 1.4765 and 0.9863 from yesterday's
closing quotes of 0.7612, 1.4792 and 0.9839, respectively. If the
aussie extends its uptrend, it is likely to find resistance around
0.77 against the greenback, 1.45 against the euro and 1.00 against
the loonie.
Against the NZ dollar, the aussie edged up to 1.0416 from an
early 1-1/2-month low of 1.0393. On the upside, 1.06 is seen as the
next resistance level for the aussie.
The NZ dollar rose to a 2-day high of 0.7336 against the U.S.
dollar, from yesterday's closing value of 0.7308. The kiwi may test
resistance around the 0.74 area.
Against the euro and the yen, the kiwi advanced to 2-week highs
of 1.5367 and 73.70 from yesterday's closing quotes of 1.5398 and
73.41, respectively. If the kiwi extends its uptrend, it is likely
to find resistance around 1.51 against the euro and 76.00 against
the yen.
Looking ahead, Swiss industrial production for the second
quarter and German Ifo business climate index for August are due to
be released later in the day.
In the New York session, Markit's flash U.S. PMI for August,
U.S. durable goods orders for July and U.S. weekly jobless claims
for the week ended August 20 are slate for release.
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