Commodity Prices Rise As Crude Oil Prices Traded Higher
January 01 2025 - 8:07PM
RTTF2
The commodity currencies such as Australia, the New Zealand and
the Canadian dollar strengthened against their major currencies in
the Asian session on Thursday amid the crude oil price rise as
investors focused on a revival in China's economy and fueled demand
when they returned from holidays following the promise by the
Chinese President Xi Jinping to support growth.
In his New Year's speech on Tuesday, Chinese President Xi
announced that the nation would adopt more aggressive policies to
spur growth in 2025.
The Brent crude futures increased 46 cents, or 0.6%, to $75.10 a
barrel. The U.S. West Texas Intermediate oil futures increased 49
cents, or 0.7%, to $72.21 a barrel.
Investors are anticipating the Energy Information
Administration's weekly U.S. oil stock data, which was postponed
until Thursday because of the New Year holiday.
Decades of Moscow's hegemony over Europe's energy markets ended
on New Year's Day when Russian gas exports through Ukraine via
Soviet-era pipelines were stopped.
Data from S&P Global showed that China's manufacturing
sector expanded at a softer pace in December largely due to weaker
foreign demand. The Caixin manufacturing Purchasing Managers' Index
posted 50.5 in December, down from 51.5 in November. The score was
expected to climb to 51.6.
The official PMI data released earlier this week showed that the
manufacturing sector expanded only marginally in December. The PMI
dropped to 50.1 from 50.3 in the previous month.
In economic news, Australia's CoreLogic Home Value Index
declined by 0.1% month-on-month in December 2024, the first
negative movement in nearly two years. This shift followed a
surprisingly strong period of growth between February 2023 and
October 2024. On an annual basis, Australian home values rose by
4.9% in 2024.
Meanwhile, the Judo Bank Australia Manufacturing PMI fell to
47.8 in December 2024, down from 49.4 in November, according to
final data. This marked the eleventh consecutive month of
deteriorating manufacturing conditions, with the decline
accelerating beyond the initial estimate of 48.2.
In the Asian trading today, the Australian dollar rose to a
1-week high of 1.6668 against the euro and a 3-day high of 97.87
against the yen, from yesterday's closing quotes of 1.6723 and
97.10, respectively. If the aussie extends its uptrend, it is
likely to find resistance around 1.64 against the euro and 99.00
against the yen.
Against the U.S. and the Canadian dollars, the aussie advanced
to 2-day highs of 0.6223 and 0.8944 from Wednesday's closing quotes
of 0.6190 and 0.8904, respectively. The aussie may test resistance
around 0.63 against the greenback and 0.91 against the loonie.
The aussie edged up to 1.1071 against the NZ dollar, from
yesterday's closing value of 1.1061. On the upside, 1.12 is seen as
the next resistance level for the aussie.
The NZ dollar rose to 2-day highs of 0.5622 against the U.S.
dollar and 88.46 against the yen, from yesterday's closing quotes
of 0.5595 and 87.77, respectively. If the kiwi extends its uptrend,
it is likely to find resistance around 0.58 against the greenback
and 89.00 against the yen.
Against the euro, the kiwi advanced to a 2-day high of 1.8441
from Wednesday's closing value of 1.8504. The kiwi is likely to
find resistance around the 1.82 region.
The Canadian dollar rose to a 3-week high of 1.4876 against the
euro, from yesterday's closing value of 1.4896. On the upside, 1.47
is seen as the next resistance level for the loonie.
Against the U.S. dollar and the yen, the loonie advanced to a
2-day high of 1.4372 and a 3-day high of 109.68 from Wednesday's
closing quotes of 1.4385 and 109.04, respectively. If the loonie
extends its uptrend, it is likely to find resistance around 1.42
against the greenback and 111.00 against the yen.
Looking ahead, Manufacturing PMI results for December from
various European economies and the U.K. are due to be released in
the European session.
In the New York session, U.S. MBA mortgage approvals data, U.S.
weekly jobless claims, U.S. and Canada manufacturing PMI results
for December, U.S. construction spending for November and U.S. EIA
crude oil data are slated for release.
Euro vs CAD (FX:EURCAD)
Forex Chart
From Dec 2024 to Jan 2025
Euro vs CAD (FX:EURCAD)
Forex Chart
From Jan 2024 to Jan 2025
