Australian, NZ Dollars Higher On Rising Oil Prices
May 17 2020 - 11:44PM
RTTF2
The Australian and NZ dollars strengthened against their major
counterparts in the Asian session on Monday, as oil prices rose on
indications of a gradual recovery in demand amid easing coronavirus
restrictions across the globe.
Risk sentiment improved after U.S. Federal Reserve Chairman
Jerome Powell gave an optimistic outlook for economic recovery
later this year.
"Assuming there is not a second wave of the coronavirus, I think
you will see the economy recover steadily through the second half
of this year," Powell said in an interview with CBS.
Italy and Spain are set to further ease their coronavirus
lockdown restrictions from today.
Further underpinning oil prices were production cuts by the
Organization of the Petroleum Exporting Countries and its
allies.
Last week, Saudi Arabia decided to cut an additional 1 million
barrels of oil per day in June, while OPEC+ is determined to
maintain existing oil cuts beyond June, when the group is due to
meet again.
The kiwi rose to 0.5962 against the greenback, 63.86 against the
yen and 1.8158 against the euro, from its early lows of 0.5924,
63.46 and 1.8258, respectively. The kiwi is poised to find
resistance around 0.62 against the greenback, 65.00 against the yen
and 1.70 against the euro.
The kiwi recovered to 1.0803 against the aussie, from more than
a 6-month low of 1.0829 hit at 8:00 pm ET. The next likely
resistance for the kiwi is seen around the 1.06 level.
Reversing from its early lows of 0.6410 against the greenback
and 68.65 against the yen, the aussie edged higher to 0.6453 and
69.12, respectively. The aussie is seen finding resistance around
0.69 against the greenback and 72.5 against the yen.
The aussie appreciated to 1.6868 against the euro and 0.9077
against the loonie, after falling to 1.6776 and 0.9044,
respectively. On the upside, 1.74 and 0.92 are possibly seen as the
next resistance levels for the aussie against the euro and the
loonie, respectively.
Looking ahead, U.S. NAHB housing market index for May is due out
in the New York session.
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