Commodity Currencies Rise On Soaring Oil Prices
January 07 2020 - 9:37PM
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The commodity currencies such as Australian, New Zealand and
Canadian dollars climbed against their major opponents in the Asian
session on Wednesday, as oil prices rose after Iran's missile
attack aimed at U.S. troops in Iraq.
The Pentagon confirmed that Iran fired a dozen ballistic
missiles against U.S. military and coalition forces in Iraq.
The U.S. military bases at Al-Assad and Irbil in Iraq had been
hit by the drone strike.
The attack, in retaliation for the U.S. airstrike last week that
killed top Iranian military commander Qasem Soleimani, has raised
fears of a wider conflict in the Middle East.
Oil prices soared more than 4 percent on fresh tensions in the
Middle East.
In economic releases, data from the Australian Bureau of
Statistics showed that Australia's building permits rose a
seasonally adjusted 11.8 percent in November - coming in at
14,675.
That beat forecasts for an increase of 2.0 percent following the
7.9 percent drop in October.
The construction sector in Australia continued to contract in
December, and at a faster rate, with a six-and-a-half-year low PMI
score of 38.9, according to the latest survey by the Australian
Industry Group.
That's down from 40 in November and it moves further beneath the
boom-or-bust line of 50 that separates expansion from
contraction.
The aussie rose to 0.6884 against the greenback and 74.64
against the yen, from its early near a 3-week low of 0.6850 and a
1-1/2-month low of 73.76, respectively. The next possible
resistance for the aussie is seen around 0.70 against the greenback
and 76.5 against the yen.
The Australian currency gained to 1.6210 against the euro and
0.8935 against the loonie, off its early more than a 3-week low of
1.6294 and a 2-1/2-month low of 0.8904, respectively. If the aussie
rises further, 1.58 and 0.91 are likely seen as its next resistance
levels versus the euro and the loonie, respectively.
The kiwi reversed from its early more than a 2-week low of
0.6618 against the greenback and a 4-week low of 71.25 against the
yen, rising to 0.6652 and 72.12, respectively. The kiwi is seen
finding resistance around 0.68 against the greenback and 73.00
against the yen.
The NZ currency appreciated to 1.6773 against the euro, from an
early near 3-week low of 1.6867. The kiwi is poised to find
resistance around the 1.66 level.
The kiwi rose back to 1.0338 against the aussie, nearing towards
a 5-month high of 1.0332 seen at 6:30 pm ET. On the upside, 1.02 is
likely seen as its next resistance level.
The loonie advanced to 1.2980 against the greenback and 83.55
against the yen, coming off from its early low of 1.3007 and near a
4-week low of 82.80, respectively. Next key resistance for the
loonie is seen around 1.28 against the greenback and 86.00 against
the yen.
The loonie climbed to a 5-day high of 1.4471 against the euro,
off an early low of 1.4520. The loonie may test resistance around
the 1.42 area.
Looking ahead, Eurozone economic sentiment index for December
will be released in the European session.
At 8:15 am ET, ADP private payrolls data for December is set for
release.
The U.S. consumer credit for November is due out in the New York
session.
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