Antipodean Currencies Rises As Asian Shares Traded Higher

(RTTNews) - The Antipodean currencies such as the Australia and the New Zealand dollars strengthened against other major currencies in the Asian session on Friday, after Asian stock markets traded higher, following the broadly positive cues from Wall Street overnight, with the markets rebounding as investors shrugged off the U.S. Fed's indication that an interest rate cut in March is unlikely after a sell-off on Wednesday. Markets in South Korea, Hong Kong, Singapore and Australia were up well above 1 percent.

In economic news, the value of owner-occupied home loans in Australia was down a seasonally adjusted 5.6 percent on month in December, the Australian Bureau of Statistics said on Friday - coming in at A$16.77 billion. That followed the 0.5 percent increase in November. Overall home loans slipped 4.1 percent on month to A$26.27 billion. On a yearly basis, owner-occupied loans rose 7.4 percent, investment lending surged 20.4 percent and overall lending was up 11.7 percent.

The ABS also said producer prices in Australia were up 0.9 percent on quarter in the fourth quarter of 2023, the Australian Bureau of Statistics said on Friday. That was shy of expectations for an increase of 1.9 percent following the 1.8 percent gain in the previous three months. On a yearly basis, producer prices climbed 4.1 percent, roughly in line with forecasts and up from 3.8 percent in the third quarter.

In the Asian trading today, the Australian dollar rose to a 2-day high of 0.6600 against the U.S. dollar, from yesterday's closing value of 0.6569. The aussie may test resistance near the 0.68 region.

Against the yen and the euro, the aussie advanced to 96.64 and 1.6481 from Thursday's closing quotes of 96.21 and 1.6537, respectively. If the aussie extends its uptrend, it is likely to find resistance around 98.00 against the yen and 1.62 against the euro.

Against the Canada and the New Zealand dollars, the aussie edged up to 0.8824 and 1.0726 from yesterday's closing quotes of 0.8795 and 1.0695, respectively. On the upside, 0.90 against the loonie and 1.08 against the kiwi are seen as the next resistance level for the aussie.

The NZ dollar rose to 2-day highs of 0.6158 against the U.S. dollar and 90.11 against the yen, from yesterday's closing quotes of 0.6143 and 89.94, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.63 against the greenback and 92.00 against the yen.

Against the euro, the kiwi edged up to 1.7667 from Thursday's closing value of 89.94. The next possible upside target for the kiwi is seen around the 1.74 region.

Meanwhile, the safe-haven assets such as the U.S. dollar and the yen fell against their major rivals as Asian shares traded higher.

The U.S. dollar fell to 2-day lows of 1.0883 against the euro and 0.8565 against the Swiss franc, from yesterday's closing quotes of 1.0872 and 0.8574, respectively. If the greenback extends its downtrend, it is likely to 1.10 find euro and 0.83 against the franc.

Against the pound and the Canadian dollar, the greenback edged down to 1.2756 and 1.3370 from Thursday's closing quotes of 1.2742 and 1.3384, respectively. On the downside, 1.28 against the pound and 1.32 against the loonie are seen as the next support level for the greenback. .

The yen fell to 2-day lows of 159.41 against the euro, 186.81 against the pound and 170.91 against the Swiss franc, from yesterday's closing quotes of 159.15, 186.56 and 170.66, respectively. If the yen extends its downtrend, it is likely to find support around 163.00 against the euro, 190.00 against the pound and 173.00 against the franc.

Against the U.S. dollar, the yen edged down to 146.52 from yesterday's closing values of 146.42. On the downside, 148.00 is seen as the next support level for the greenback.

The yen slipped to a 2-day low of 109.55 against the Canadian dollar, from Thursday's closing value of 109.36. The next possible downside target for the yen is seen around the 111.00 region.

Looking ahead, U.S. unemployment rate for January, U.S. University of Michigan's consumer sentiment for January, U.S. factory orders for December and U.S. Baker Hughes oil rig count data.