Australian And New Zealand Dollars Recover Against Most Majors
The Australian and the New Zealand dollars, which weakened against most major currencies in early Asian deals on Tuesday recouped their losses shortly.
The aussie thus rose to a 4-day high against the greenback and the euro. But the aussie remained higher against the kiwi and soared to a 3- 1/2 -month high.
Asian stocks are trading mixed today. While the stock markets in Australia, China, South Korea and Taiwan are strengthening, Japan, New Zealand, Hong Kong and Singapore markets are lower.
The Aussie failed to show any major impact immediately after the release of the minutes of the Reserve Bank of Australia’s August meeting. But the aussie gained momentum shortly after and thus recovered its early losses.
The Reserve Bank of Australia’s policy board members felt in August’s rate setting meeting that an interest rate pause was warranted given falling core inflation and high uncertainty in the global economy, meeting notes showed today.
“The board therefore judged the existing level of the cash rate as still appropriate, and decided to leave it unchanged for the time being, pending further information.”
The RBA had held interest rates unchanged at 4.50% for a third straight month in August.
The New Zealand dollar that declined against the currencies of U.S. and Japan in early Asian deals on Tuesday recouped its losses shortly. At present, the kiwi-yen pair is worth 60.34 and the kiwi-greenback pair is worth 0.7077, up from 60.0 and 0.7044 hit at 7:25 pm and 7:00 pm ET, respectively. If the NZ dollar gains further, it may likely target 0.711 against the greenback and 60.7 against the yen.
The New Zealand dollar rose against the euro after falling to 1.8206 in early Tuesday Asian deals at 7:25 pm ET. As of now, the kiwi is worth 1.8142 against the euro. On the upside, 1.807 is seen as the next target level for the NZ currency.
During early Asian deals on Tuesday, the New Zealand dollar plunged against the Aussie. Currently, the kiwi is trading at a 3- 1/2 -month low of 1.2735 against the aussie. The next downside target level for the NZ dollar is seen at 1.280.
The Australian dollar that slipped to 1.4329 against the euro in early Tuesday Asian deals at 7:20 pm ET and 0.8948 against the US currency at 8:00 pm ET advanced thereafter. Currently, the aussie is trading at a 4-day high of 0.9008 against the greenback and 1.4269 against the euro. The next upside target level for the aussie is seen at 0.904 against the greenback and 1.422 against the euro.
The Australian dollar climbed against the Canadian dollar after hitting a low of 0.9337 in early Tuesday Asian deals at 8:00 pm ET. The aussie-loonie pair is now worth 0.9383 with 0.939 seen as the next upside target level.
The Australian dollar dropped to 76.23 against the yen before bouncing back in early Tuesday Asian deals at 7:25 pm ET. Presently, the aussie-yen pair is worth 76.90. The next upside target level is seen at 77.8.
The Euro-zone current account data for June and the German ZEW economic sentiment report for August are due for release in the upcoming European session.
The U.S. housing starts and building permits, PPI and industrial production – all for the month of July have been slated for release in the New York session.
