Australian, NZ Dollars Advance Amid Rising Risk Appetite
October 29 2018 - 11:48PM
RTTF2
The Australian and New Zealand dollars climbed against their
major counterparts in the Asian session on Tuesday amid rising risk
appetite, as sentiment boosted after China's securities regulator
said it would enhance market liquidity, and encourage share
buybacks and mergers and acquisitions by listed firms.
The China Securities Regulatory Commission said that it would
increase stock market liquidity, lessen unnecessary interference in
trading, and create a level playing ground for investors in order
to prevent a slide in shares.
Market sentiment also got a boost amid reports that China is
considering a tax cut to revive its flagging automotive market.
Figures from the Australian Bureau of Statistics showed that
Australia's building approvals increased in September driven by
construction of apartments.
Dwelling approvals rose by seasonally adjusted 3.3 percent in
September but slower than the 3.8 percent rise economists had
expected.
The aussie climbed to 0.7096 against the greenback and 1.6038
against the euro, off its early lows of 0.7053 and 1.6118,
respectively. The aussie is seen finding resistance around 0.72
against the greenback and 1.57 against the euro.
The aussie strengthened to a 6-day high of 79.98 against the
yen, after falling to 79.25 at 5:00 pm ET. The next possible
resistance for the aussie is seen around the 82.00 level.
Data from the Ministry of Internal Affairs and Communications
showed that Japan's unemployment rate declined in September.
The jobless rate fell to 2.3 percent from 2.4 percent in August.
This was the lowest rate since early 1990s. The rate was expected
to remain unchanged at 2.4 percent.
Reversing from an early 4-day low of 0.9261 against the loonie,
the aussie advanced to 0.9303. The aussie is likely to test
resistance around the 0.94 level.
The kiwi firmed to a session's high of 0.6556 against the
greenback, after having dropped to 0.6520 at 5:00 pm ET. If the
kiwi rises further, 0.67 is likely seen as its next resistance
level.
The kiwi appreciated to a 6-day high of 73.89 against the yen
and an 11-day high of 1.7359 against the euro, from its early lows
of 73.26 and 1.7444, respectively. On the upside, 75.00 and 1.71
are likely seen as the next resistance levels for the kiwi against
the yen and the euro, respectively.
The kiwi rose to 1.0819 against the aussie, from an early low of
1.0844, and held steady thereafter. The kiwi is poised to find
resistance around the 1.06 level.
Looking ahead, Swiss KOF leading indicator and German jobless
for October, Eurozone GDP data for the third quarter and economic
sentiment index for October are due in the European session.
German preliminary consumer inflation data for October is set
for release at 9:00 am ET.
In the New York session, U.S. consumer confidence for October
and S&P Case/Shiller home price index for August will be
out.
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