Australian And NZ Dollars Advance Amid Risk Appetite
May 07 2020 - 03:12AM
RTTF2
The Australian and NZ dollars drifted higher against their major
counterparts in the European session on Thursday amid risk
appetite, as China exports data for April exceeded expectations and
bleak U.S. data released overnight prompted calls for more
government spending.
European Central Bank Vice President Luis de Guindos called for
greater cooperation in fiscal policy from the region's political
leaders to support the recovery.
Stating the euro zone economy is facing a deep recession, he
told the European Parliament's committee on economic and monetary
affairs that "it is thus vital that the fiscal response to this
crisis is sufficiently forceful, in all parts of the euro
area."
Survey from the Australian Industry Group showed that
Australia's services sector continued to contract in April, and at
a steeper pace, with a Performance of Services Index score of
27.1.
That's down from 38.7 in March and it moves further beneath the
boom-or-bust line of 50 that separates expansion from
contraction.
Data from the Australian Bureau of Statistics showed that
Australia posted a merchandise trade surplus of A$10.602 billion in
March.
That surpassed expectations for a surplus of A$6.8 billion and
was up from the downwardly revised A$3.865 billion surplus in
February (originally A$4.36 billion).
The aussie rose to 2-day highs of 0.6474 versus the greenback
and 68.84 versus the yen, from its early a 3-day low of 0.6379 and
a new 2-week low of 67.63, respectively. The aussie is seen finding
resistance around 0.70 versus the greenback and 74.00 versus the
yen.
The aussie strengthened to an 8-day high of 1.0699 versus the
kiwi, more than 4-month high of 0.9125 versus the loonie and a
1-week high of 1.6691 versus the euro, off its early lows of 1.0635
and 0.9039, and a 2-day low of 1.6924, respectively. The aussie is
likely to challenge resistance around 1.09 versus the kiwi, 0.92
versus the loonie and 1.62 versus the euro.
The kiwi appreciated to 0.6063 versus the greenback and 64.56
versus the yen, after falling to a 9-day low of 0.5995 and more
than a 4-week low of 63.56, respectively in early deals. The next
possible resistance for the kiwi is seen around 0.645 versus the
greenback and 68.00 versus the yen.
The kiwi hit a 1-week high of 1.7805 versus the euro, from a
2-day low of 1.8008 set at 6:45 pm ET. If the kiwi rises further,
it may locate resistance around the 1.70 level.
Looking ahead, U.S. weekly jobless claims for the week ended May
1, consumer credit for March and Canada Ivey PMI for April are set
for release in the New York session.
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