Australian, NZ Dollars Strengthen Amid Rising Risk Appetite
In Asian trading on Friday, the Australian and New Zealand
dollars climbed against their major opponents, while the Japanese
yen fell, as easing U.S.-Iran tensions and optimism about a
U.S.-China trade deal boosted risk appetite.
Sentiment lifted up after China confirmed that Vice Premier Liu
He will visit Washington next week to sign the phase one trade deal
with the U.S.
Investors now look ahead to the release of the U.S. Labor
Department's jobs report for December later in the day.
Economists expect employment to increase by 164,000 jobs in
December after an increase of 266,000 jobs in November. The jobless
rate is expected to hold at 3.5 percent.
Data from Australian Industry Group showed that Australia's
service sector contracted in December.
The Performance of Services Index fell 5.0 points to 48.7 points
in December. A score below 50 indicates contraction in the sector.
The aussie rose to a 2-day high of 0.6883 against the greenback and
a 1-week high of 75.43 against the yen, from its early lows of
0.6851 and 75.01, respectively. The aussie is likely to locate
resistance around 0.71 against the greenback and 76.5 against the
Reversing from its early lows of 1.6213 against the euro and
0.8947 against the loonie, the aussie appreciated to 3-day highs of
1.6140 and 0.8988, respectively. The aussie is seen finding
resistance around 1.60 against the euro and 0.91 against the
The kiwi strengthened to 0.6627 against the greenback, 72.62
against the yen and 1.6763 against the euro, off its early lows of
0.6602 and 72.30 and a 2-day low of 1.6823, respectively. The kiwi
may locate resistance around 0.68 against the greenback, 74.00
against the yen and 1.66 against the euro.
The yen fell to a 2-week low of 109.61 against the greenback and
an 8-day low of 121.77 against the euro, coming off from its early
highs of 109.45 and 121.57, respectively. The next possible support
for the yen is seen around 111.00 against the greenback and 123.00
against the euro.
The yen reversed from its early highs of 143.03 against the
pound and 112.48 against the franc and dropped to 143.45 and
112.67, respectively. If the yen slides further, 146.00 and 114.00
are likely seen as its next support levels against the pound and
the franc, respectively.
The Japanese currency depreciated to a 10-day low of 83.92
against the loonie, after rising as high as 83.77 in early deals.
On the downside, 85.00 is possibly seen as the next support level
for the yen.
Looking ahead, U.S. and Canadian jobs data for December and
wholesale inventories for November are due out in the New York
Sterling vs Yen (FX:GBPJPY)
From Oct 2020 to Nov 2020
Sterling vs Yen (FX:GBPJPY)
From Nov 2019 to Nov 2020