Australian, NZ Dollars Advance On PBoC Easing Hopes, Receding Russia-Ukraine Tensions
The Australian and NZ dollars climbed against their major
opponents in the Asian session on Wednesday, as risk sentiment
improved amid easing fears of an imminent attack by Russia on
Ukraine and on expectations for more policy easing from the
People's Bank of China following soft inflation data.
Russia said on Tuesday that some of its troops from the borders
of Ukraine were returning to deployment bases after after
completing the exercises.
Official data showed that China's consumer and producer
inflation rose less than expected in January.
Consumer prices climbed 0.9 percent on year in January, missing
expectations for an increase of 1.0 percent and down sharply from
1.5 percent in December.
Investors focus on the minutes from the Federal Reserve's
January policy meeting due later today for more clarity on the pace
of monetary tightening and the possibility of a 50 basis point move
The aussie advanced to 5-day highs of 82.86 against the yen and
0.7162 against the greenback, after dropping to 82.61 and 0.7143,
respectively in early deals. The aussie is seen finding resistance
around 84.00 against the yen and 0.74 against the greenback.
Reversing from its early lows of 1.5888 against the euro and
1.0762 against the kiwi, the aussie edged higher to 1.5851 and
1.0781, respectively. Next key resistance for the aussie is
possibly seen around 1.54 against the euro and 1.09 against the
The aussie touched 0.9116 against the loonie, hitting a 5-day
high. The currency is likely to challenge resistance around the
The kiwi moved up to a 5-day high of 76.91 against the yen and a
2-day high of 0.6649 against the greenback, off its early lows of
76.70 and 0.6633, respectively. The kiwi is poised to find
resistance around 78.00 against the yen and 0.68 against the
The kiwi recovered from an early low of 1.7110 against the euro,
climbing to 1.7073. If the kiwi rises further, 1.66 is likely seen
as its next resistance level.
Looking ahead, Eurozone industrial production for December is
due in the European session.
Canada CPI for January and wholesale sales for December, as well
as U.S. retail sales, industrial production and export and import
prices, all for for January, business inventories data for December
and NAHB housing market index for February will be released in the
New York session.
The Fed minutes from the January 25-26 meeting are set for
release at 2:00 pm ET.
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