Australian Dollar Soars To Multi-month High Against NZ Dollar
The Australian dollar gained ground on Monday morning in Asia, boosted by a surge in regional stocks.
After opening flat, the Australian stock market has moved higher and is currently trading firm today, with investors going in for some bargain hunting after the previous session’s sharp losses. The benchmark S&P/ASX 200 index is up 35.2 points or 0.8% at 4,721. The broader All Ordinaries index is currently up 35.3 points or 0.7% at 4,742.
The aussie also firmed up as the Australian Bureau of Statistics report revealed that Australia’s new motor vehicles sales rose 3.7 percent in October.
The sales of new motor vehicles in Australia were up a seasonally adjusted 3.7 percent on year in October, the Australian Bureau of Statistics said today, coming in at 81,122. New auto sales had fallen a revised 1.8 percent on year in September.
The Australian dollar inched higher to 81.92 against the Japanese yen by 9:30 pm ET, compared to last week’s close of 81.4. On the upside, resistance is seen around the 82.8 level for the aussie. The aussie-yen pair is presently quoted at 81.8.
The Japanese stock markets are closed today in observance of Labor Thanksgiving Day and will be re-opened on Tuesday.
The aussie soared to 1.2698 against the kiwi by 9:30 pm ET and this set the highest mark for the pair since July 31. A rise above the 1.272 resistance may push the Australian currency to its highest level in more than 5 months. The aussie-kiwi pair was worth 1.2634 at Friday’s close.
The Australian dollar also advanced to 1.6219 against the European currency before holding steady around 7:40 pm ET. The euro-aussie pair, which closed Friday’s deals at 1.6251, is presently quoted at 1.6239.
The Purchasing Manager Index reports from the major European economies for November are slated for release in the upcoming European session.
The aussie drifted higher to 0.9208 against the US dollar before leveling off around 9:30 pm ET, compared to 0.9151 hit late New York Friday. The aussie-buck pair is presently worth 0.9194 with 0.923 seen as the next target level.
Turning to the US, the Chicago Fed National Activity Index for October is scheduled to be released at 8:30 AM ET. In September, the Index stood at -81.
At the same time, traders are looking for the National Association of Realtors report on existing home sales for October at 10:00 AM ET. Economists estimate existing home sales of 5.7 million for the month.
