Australian Dollar Rises Amid Rising Risk Appetite
July 24 2016 - 10:26PM
RTTF2
The Australian dollar strengthened against the other major
currencies in the Asian session on Monday amid rising risk
appetite, tracking the gains on Wall Street Friday. However, lower
commodity prices weighed on resources stocks.
Investors are also keenly awaiting the outcome of the Bank of
Japan and the U.S. Federal Reserve's policy meetings later in the
week.
Meanwhile, the other Antipodean currency, the NZ dollar, fell
against its most major rivals on the back of weak commodity
prices.
Crude oil for September delivery are currently down $0.02 to
$44.17 a barrel. The crude oil prices fell on concerns over rising
gasoline stockpiles. Also, the U.S. Baker Hughes rig Count data
showed that the number of oil and gas rigs have increased this
week.
The NZ dollar fell to a 4-day low of 0.6957 against the U.S.
dollar, from Friday's closing value of 0.7001. The kiwi may test
support near the 0.68 region.
Against the euro and the yen, the kiwi edged down to 1.5745 and
74.12 from an early 5-day high of 1.5628 and a 4-day high of 74.62,
respectively. If the kiwi extends its downtrend, it is likely to
find support around 1.63 against the euro and 0.71 against the
yen.
Last Friday, the Australian dollar fell 0.52 percent against the
U.S. dollar, 0.21 percent against the yen and 0.08 percent against
the euro.
In the Asian trading, the Australian dollar rose to a 6-day high
of 0.9825 against the Canadian dollar, from Friday's closing value
of 0.9795. On the upside, 1.00 is seen as the next resistance level
for the aussie.
Against the yen and the euro, the aussie advanced to 4-day highs
of 79.69 and 1.4660 from last week's closing quotes of 79.12 and
1.4699, respectively. If the aussie extends its uptrend, it is
likely to find resistance around 82.00 against the yen and 1.44
against the euro.
Against the U.S. and the New Zealand dollars, the aussie climbed
to 0.7481 and 1.0719 from last week's closing quotes of 0.7455 and
1.0647, respectively. The aussie may test resistance around 0.77
against the greenback and 1.09 against the kiwi.
Looking ahead, German Ifo business climate index for July is due
to be released at 4:00 am ET.
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