Australian And New Zealand Dollars Strengthen As Most Asian Stocks Rise
Tuesday morning in Asia, the Australian and the New Zealand dollars surged up against their major counterparts as a rise in most Asian stocks boosted demand for higher-yielding currencies.
Hong Kong’s Hang Seng climbed 1%, China’s Shangai composite index soared 1.3%, Australia’s S&P 200 index advanced 0.7% and the All Ordinaries index was 0.6% higher, New Zealand’s NZX 50 index gained 0.6% and Taiwan’s main index rose 0.3%.
But Japan’s Nikkei 225 index fell 1.2% and South Korea’s Kospi is currently trading flat.
The Reserve Bank of Australia released the minutes of its July meeting at 9:30 pm ET. Although the aussie eased amid the release of the RBA minutes, it rebounded shortly.
The Reserve Bank of Australia adopted a “wait-and-see” approach in keeping rates unchanged at its July Monetary Policy meeting. At that meeting, the Official Cash Rate was left unchanged at 4.50 percent.
Minutes showed RBA members were briefed on “ongoing tensions” in the European financial markets, noting that Moody’s had downgraded Greece’s debt in mid-June.
“Members noted that the coming month would see important announcements about the health of the European banking sector, which had the potential to have a significant impact on financial markets and global confidence,” the minutes said.
The New Zealand dollar advanced against its U.S. and Japanese counterparts in early Asian deals on Tuesday. At present, the kiwi is trading at a 4-day high of 0.7125 against the greenback and 62.05 against the yen, compared to yesterday’s close of 0.7060 and 61.21, respectively. If the New Zealand dollar rises further, it may target 0.731 against the greenback and 64.3 against the yen.
During early Asian deals on Tuesday, the New Zealand dollar strengthened against the euro. As of now, the kiwi is worth 1.8202 against the euro with 1.817 seen as the next upside target level. The euro-kiwi pair closed yesterday’s trading at 1.8330.
The Australian dollar climbed against the U.S. currency during early Asian session on Tuesday. The aussie-greenback pair that closed yesterday’s trading at 0.8686 is now trading at a 4-day high of 0.8770. The next upside target level for the aussie is seen at 0.885.
In early Asian deals on Tuesday, the Australian dollar rose against the currencies of Europe and Japan. At present, the aussie is trading at a 4-day high of 76.40 against the yen and 1.480 against the euro. If the aussie gains further, it may likely target 1.434 against the euro and 78.0 against the yen. The aussie-yen and the euro-aussie pairs were worth 75.30 and 1.4908, respectively at yesterday’s close.
The Australian dollar edged up against the Canadian dollar during early Asian deals on Tuesday. The aussie-loonie pair is currently trading at a 10-week high of 0.9220, compared to 0.9163 hit late New York Monday. On the upside, 0.945 is seen as the next target level for the Australian currency.
During early Asian deals on Tuesday, the Australian dollar jumped against the New Zealand dollar and reached an 8-day high of 1.2346 at 9:05 pm ET. Although the aussie eased thereafter, it rebounded within an hour and the pair is presently trading at 1.2333, compared to Monday’s close of 1.2316. If the aussie advances further and breaches an 8-day high, the next target level is seen at 1.242.
Looking ahead, Japan’s final leading and coincident indexes report for May is due at 1:00 am ET.
The German PPI for June and the Italian industrial orders for May are expected in the European session.
The U.S. housing starts and building permits report for June has been slated for release at 8:30 am ET.
At 9:00 am ET, the Bank of Canada is scheduled to announce its interest rate decision. Economists are expecting the bank to raise its key lending rate by 0.25% to 0.75%.
