Commodity Currencies Rise As Oil Prices Rebound
December 22 2014 - 2:53AM
RTTF2
The commodity currencies such as Australia, New Zealand and
Canadian dollars strengthened against their major counterparts in
the Asian session on Monday amid a rally in oil prices.
Crude oil for February delivery is currently up $0.77 to $57.90
a barrel.
Saudi Petroleum Minister Ali Naimi said on Sunday at a
conference in Abu Dhabi that oil market would recover with the
improvement of the global economy and fossil fuel will remain the
main source of energy for decades to come.
Qatar's energy minister, Mohammed Al Sada, called on crude
producers, excluded from OPEC, to cut their "irresponsible" output
on the sidelines of the conference.
Oil prices found support after an official report from the
Energy Information Administration released on last week showed that
U.S. stockpiles to have declined less than expected.
Meanwhile, the NZ dollar fell earlier as the nation's consumer
confidence declined to 114.8 in the fourth quarter of 2014, from
116.7 in the third quarter. This marked the lowest reading in over
a year.
Last Friday, the NZ dollar rose 0.37 percent against the U.S.
dollar, 0.64 percent against the yen and 0.15 percent against the
euro. The Australian dollar rose 0.18 percent against the yen. The
Canadian dollar rose 0.21 percent against the U.S. dollar, 0.26
percent against the euro and 0.42 percent against the yen.
In the Asian trading today, the Australian dollar rose to a
4-day high of 1.4983 against the Euro, from an early low of 1.5039.
If the aussie extends its uptrend, it is likely to find resistance
around the 1.48 area.
Against the U.S. dollar and the yen, the aussie edged up to
0.8171 and 97.62 from early lows of 0.8131 and 97.08, respectively.
On the upside, 0.82 against the greenback and 99.00 against the yen
are seen as the next support levels for the aussie.
The NZ dollar recovered to 0.7754 against the U.S. dollar, from
an early 4-day low of 0.7713 hit in the Asian session today. The
kiwi is likely to find resistance near the 0.78 region.
Moving away from early 4-day lows of 92.07 against the yen and
1.5844 against the euro, the kiwi appreciated to 92.60 and 1.5787,
respectively. The kiwi may test resistance near 93.75 against the
yen and 1.56 against the euro.
The Canadian dollar rose to 1.1589 against the U.S. dollar, from
an early low of 1.1614 hit in the Asian session today. Continuation
of bullish trend may lead the loonie to a resistance around the
1.14 mark.
Against the yen and the euro, the loonie edged up to 103.11 and
1.4185 from early lows of 102.76 and 1.4213, respectively. If the
loonie extends gain, it may find resistance around 104.75 against
the yen and 1.40 against the euro.
Looking ahead, Eurozone flash consumer sentiment index for
December and U.S. existing home sales data for November are due to
be released in the New York session.
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