Australian Dollar Rises Amid Rising Risk Appetite
March 28 2017 - 10:32PM
RTTF2
The Australian dollar strengthened against the other major
currencies in the Asian session on Wednesday amid rising risk
appetite, tracking the positive lead overnight from Wall Street
after data showed that U.S. consumer confidence rose to a
sixteen-year high in March. Higher crude oil prices also lifted
investor sentiment.
Nevertheless, investors are cautious as they await the start of
the Brexit process today. UK Prime Minister Theresa May is expected
to trigger Article 50 later on Wednesday, which would begin the
Brexit process. The UK government will deliver a letter to the
European Council president Donald Tusk, the mechanism for starting
the Brexit process.
Crude oil delivery for May is currently up by 0.18 percent or
$48.55 per barrel. Crude oil futures rallied amid news that Libya
has halted the pipeline from its biggest field.
In the Asian trading, the Australian dollar rose to a 5-day high
of 1.4123 against the euro, from yesterday's closing value of
1.4159. The aussie may test resistance around the 1.39 region.
Against the U.S. dollar and the yen, the aussie advanced to
6-day highs of 0.7657 and 85.17 from yesterday's closing quotes of
0.7633 and 84.85, respectively. If the aussie extends its uptrend,
it is likely to find resistance around 0.77 against the greenback
and 86.00 against the yen.
Against the New Zealand and the Canadian dollars, the aussie
climbed to an 8-day high of 1.0925 and a 1-week high of 1.0241 from
yesterday's closing quotes of 1.0882 and 1.0216, respectively. The
aussie is likely to find resistance around 1.10 against the kiwi
and 1.03 against the loonie.
Looking ahead, Swiss KOF institute spring economic forecast,
Swiss ZEW economic expectation index for March and U.K. mortgage
approvals for February are slated for release later in the day.
In the New York session, U.S. pending home sales data for
February and U.S. crude oil inventories data are set to be
published.
At 9:20 am ET, Federal Reserve Bank of Chicago President Charles
Evans is expected to speak about the current economic conditions
and monetary policy at the International Capital Markets
Conference, in Frankfurt.
At 11:30 am ET, Federal Reserve Bank of Boston President Eric
Rosengren is expected to speak on the economic outlook before
members of the Boston Economic Club and Federal Reserve staff.
At 12:50 pm ET, European Central Bank Executive Board Member
Peter Praet will deliver a speech at the "2017 Harvard Law Europe -
US Symposium on International Financial Systems", in Frankfurt.
At 1:15 pm ET, Federal Reserve Bank of San Francisco President
John Williams will deliver a speech on "From Sustained Recovery to
Sustainable Growth: What a Difference Four Years Makes" before the
Forecasters Club of New York.
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