Commodity Currencies As Oil Prices Add To Gains
February 03 2016 - 7:00PM
RTTF2
Commodity currencies such as the Australian, the New Zealand and
the Canadian dollars strengthened against their major counterparts
in the Asian session on Thursday amid rising risk appetite, as
gains in crude oil prices as well as other commodity prices on the
back of a weaker dollar lifted resource stocks.
Crude oil for March delivery are currently up $0.40 at $32.68 a
barrel. Oil prices rallied, taking back steep losses from the
previous two sessions as the dollar weakened.
Wednesday, the Australian, the New Zealand and the Canadian
dollars showed mixed trading against its major rivals.
The Australian and the Canadian dollars fell against the yen and
the euro. However, the NZ dollar rose against the euro and held
steady against the yen. Meanwhile, the Australian, the New Zealand
and the Canadian dollars rose against the U.S. dollar.
In the Asian trading, the Australian dollar rose to a 1-month
high of 0.7191 against the U.S. dollar and a 2-day high of 84.94
against the yen, from yesterday's closing quotes of 0.7168 and
84.48, respectively. If the aussie extends its uptrend, it is
likely to find resistance around 0.73 against the greenback and
88.00 against the yen.
Against the euro, the aussie edged up to 1.5422 from yesterday's
closing value of 1.5487. The aussie may test resistance near the
1.49 region.
The NZ dollar rose to 0.6684 against the U.S. dollar, 78.96
against the yen and 1.6588 against the euro, from yesterday's
closing quotes of 0.6661, 78.53 and 1.6645, respectively. If the
kiwi extends its uptrend, it is likely to find resistance around
0.68 against the greenback, 82.00 against the yen and 1.61 against
the euro.
Against the Australian dollar, the kiwi edged up to 1.0747 from
an early low of 1.0779. The kiwi is likely to find resistance
around the 1.05 area.
The Canadian dollar rose to nearly a 2-month high of 1.3719
against the U.S. dollar, from yesterday's closing value of 1.3778.
On the upside, 1.35 is seen as the next resistance level for the
loonie.
Against the yen, the euro and the Australian dollar, the loonie
edged up to 86.06, 1.5222 and 0.9849 from yesterday's closing
quotes of 85.52, 1.5299 and 0.9871, respectively. If the loonie
extends its uptrend, it is likely to find resistance around 89.00
against the yen, 1.49 against the euro and 0.97 against the
aussie.
Looking ahead, SECO Swiss consumer confidence index for January
is due to be released in the pre-European session at 1:45 am
ET.
Subsequently, Federal Reserve Bank of Boston President Eric
Rosengren will deliver a speech titled "Too Big to Fail" at the
Bank of International Settlements in Cape Town at 2:15 am ET.
At 3:00 am ET, European Central Bank President Mario Draghi is
scheduled to deliver the Marjolin Lecture at the SUERF conference
organised by the German Bundesbank in Frankfurt.
At 4:00 am ET, the European Central Bank is scheduled to release
the economic bulletin.
The Bank of England is due to announce its interest rate
decision, inflation report and the minutes of the meeting at 7:00
am ET. Economists expect the bank to retain interest rates
unchanged at 0.50 percent and asset purchase target at GBP 375
billion.
At 7:45 am ET, Bank of England Governor Mark Carney, along with
the other MPC members, will hold a press conference on the
Inflation Report in London.
In the New York session, U.S. weekly jobless claims for the week
ended January 30 and U.S. factory orders data for December are
slated for release.
Federal Reserve Bank of Dallas President Robert Kaplan is due to
participate in a discussion of Global Economic Conditions at an
event hosted by the Real Estate Council in Dallas at 8:30 am
ET.
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