Australian, New Zealand Dollars Climb Amid Risk Appetite
December 12 2018 - 10:10PM
RTTF2
The Australian and New Zealand dollars climbed against their
major counterparts in the Asian session on Thursday, as Asian
shares followed Wall Street higher, after positive developments on
U.S.-China trade talks and news that U.K. Prime Minister Theresa
May sustained a no-confidence vote by the Conservative Party.
Sentiment bolstered after China adopted more measures to reach
US demands to open its markets.
May is heading to Brussels to attend the European Union summit
after surviving a vote of confidence by Conservative MPs.
After yesterday's confidence vote, May has vowed to deliver the
Brexit "people voted for" and also assured that she would seek
legal and political assurances from EU leaders on the Irish
backstop.
Data from Statistics New Zealand showed that New Zealand food
prices fell a seasonally adjusted 0.2 percent on month in November,
following the 0.3 percent increase in October.
On a yearly basis, food prices climbed 0.4 percent after gaining
0.6 percent in the previous month.
The aussie spiked up to weekly highs of 0.7243 against the
greenback and 82.16 against the yen, off its early lows of 0.7212
and 81.69, respectively. The next possible resistance for the
aussie is seen around 0.74 against the greenback and 84.00 against
the yen.
The aussie rose to 1.5704 versus the euro, from an early 2-day
low of 1.5765. The aussie is poised to find resistance around the
1.55 level.
The aussie reversed from an early low of 0.9629 against the
loonie, rising to a 2-day high of 0.9670. If the aussie rises
further, 0.98 is likely seen as its next resistance level.
The kiwi edged up to 0.6879 against the greenback and 78.03
against the yen, from its early lows of 0.6842 and 77.53,
respectively. On the upside, 0.70 and 80.00 are possibly seen as
the next resistance levels for the kiwi against the greenback and
the yen, respectively.
Reversing from an early low of 1.6613 against the euro, the kiwi
rose to 1.6533. The kiwi is seen finding resistance around the 1.63
level.
The kiwi bounced off to 1.0525 against the aussie, from an early
low of 1.0550. Next key resistance for the kiwi is seen around the
1.04 region.
Looking ahead, Swiss producer and import prices for November are
due in the European session.
At 3:30 am ET, the Swiss National Bank's interest rate decision
is due. Economists expect the interest rate on sight deposits to be
retained at -0.75 percent and the target range for the three-month
Libor to be kept unchanged between -1.25 percent and -0.25
percent.
At 7:45 am ET, the European Central Bank announces its decision
on interest rate. Economists expect to keep the main refi rate at a
record low of zero percent and the deposit rate at -0.40
percent.
In the New York session, Canada house price index for October,
U.S. export and import prices for November and weekly jobless
claims for the week ended December 8 are scheduled for release.
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