Antipodean Currencies Rise As Asian Markets Trade Mostly Higher
November 18 2024 - 8:28PM
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Antipodean currencies such as the Australian and the New Zealand
dollars strengthened against their major currencies in the Asian
session on Tuesday, as traders picked up some stocks at a bargain
after the recent weakness in the markets amid concerns about the
outlook for interest rates. Strong gains in mining and energy
stocks also boosted the markets amid climbing commodity prices.
Crude oil prices climbed higher on concerns about likely
shortage in supplies due to an escalation in Russia - Ukraine war,
while a weaker dollar also contributed to the rise in oil prices.
West Texas Intermediate Crude oil futures for December closed
higher by $2.14 or 3.2 percent at 69.16 a barrel.
In economic news, the Reserve Bank of Australia will on Tuesday
release the minutes from its November 5 monetary policy meeting. At
the meeting, the RBA maintained its benchmark interest rate at a
13-year high of 4.35 percent for the eighth straight session,
saying that underlying inflation remains too high. The bank had
previously changed its rate in November 2023, when it was lifted by
25 basis points to the highest level since late 2011.
In the Asian trading today, the Australian dollar rose to 6-day
highs of 0.6525 against the U.S. dollar and 1.6248 against the
euro, from yesterday's closing quotes of 0.6507 and 1.6283,
respectively. The aussie may test resistance near 0.66 against the
greenback and 1.61 against the euro.
The aussie advanced to a 1-week high of 0.9140 against the
Canadian dollar, from Monday's closing value of 0.9119. If the
aussie extends its uptrend, it is likely to find resistance around
the 0.92 region.
Against the yen, the aussie edged up to 100.63 from a recent low
of 100.16. On the upside, 103.00 is seen as the next resistance
level for the aussie.
The aussie advanced to 1.1060 against the NZ dollar, from
yesterday's closing value of 1.1038. The next possible upside
target for the aussie is seen around the 1.11 region.
The NZ dollar rose to a 6-day high of 0.5901 against the U.S.
dollar, from a recent low of 0.5878. The kiwi is likely to find
resistance around the 0.60 area.
Against the yen and the euro, the edged up to 91.00 and 1.7963
from recent lows of 90.62 and 1.8016, respectively. If the kiwi
extends its uptrend, it is likely to find resistance around 92.00
against the yen and 1.78 against the euro.
Meanwhile, the safe-haven currency or the U.S. dollar weakened
against other major currencies in the Asian session today, as Asian
stock markets traded higher.
The U.S. dollar fell to a 4-day low of 1.2689 against the pound,
from a recent high of 1.2666. On the downside, 1.29 is seen as the
next support level for the greenback.
Against the euro and the Swiss franc, the greenback edged down
to 1.061 and 0.8827 from recent highs of 1.0583 and 0.8840,
respectively. If the greenback extends its downtrend, it is likely
to find support around 1.08 against the euro and 0.86 against the
franc.
Against the yen and the Canadian dollar, the greenback dropped
to 153.95 and 1.4009 from recent highs of 154.62 and 1.4030,
respectively. The next possible downside target for the greenback
is seen around 151.00 against the yen and 1.38 against the
loonie.
Looking ahead, Eurozone current account data for September, CPI
data for September and flash labor cost index for the third quarter
are due to be released in the European session.
In the New York session, Canada CPI data for October, U.S.
building permits and housing starts for October and U.S. Redbook
reports are slated for release.
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