Australian Dollar Climbs; Yen Drops On Improved Risk Sentiment
The Australian dollar advanced against its major counterparts in
the Asian session on Friday, while the Japanese yen fell amid
rising risk appetite, as soothing comments from Federal Reserve
Chair Jerome Powell helped ease concerns about more aggressive
interest rate hikes to contain inflation.
In an interview with Marketplace on Thursday, Powell reiterated
that the central bank is prepared to raise interest rates by a half
point at the coming meetings in June and July.
The Fed chief stressed that a 75 basis point increase was not on
Powell acknowledged that the central bank is "prepared to do
less," if factors come in better than expected.
The Fed's goal is to get inflation back down to 2 percent
without falling into a recession, Powell added.
The aussie gained to 0.6899 against the greenback and 89.09
against the yen, bouncing off from its early lows of 0.6853 and
87.91, respectively. The aussie is poised to find resistance around
0.72 against the greenback and 91.00 against the yen.
Against the loonie and the kiwi, the aussie edged up to 0.8966
and 1.1024, from its previous lows of 0.8937 and 1.0995,
respectively. The next possible resistance for the aussie is seen
around 0.92 against the loonie and 1.12 against the kiwi.
The aussie climbed to a 2-day high of 1.5068 against the euro,
after dropping to 1.5141 at 5:30 pm ET. On the upside, resistance
is seen near the 1.46 level.
The Japanese currency weakened to 129.36 against the greenback
and 157.94 against the pound, retreating from its prior highs of
128.25 and 156.40, respectively. The yen is likely to challenge
support around 132.00 against the greenback and 160.00 against the
After rising to 133.10 against the euro and 127.79 against the
franc in early deals, the yen dropped to 134.30 and 128.92,
respectively. The yen is seen finding support around 137.00 against
the euro and 130.00 against the franc.
The yen slipped to 99.46 against the loonie and 80.85 against
the kiwi, following its previous highs of 98.29 and 79.87,
respectively. If the yen extends drop, 102.00 and 83.00 are
possibly seen as its support levels against the loonie and the
Looking ahead, Eurozone industrial production for March will be
out in the European session.
U.S. import and export prices for April and University of
Michigan's preliminary consumer sentiment index for May are set for
release in the New York session.
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