Antipodean Currencies Rise Amid Risk Appetite

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars strengthened against their major rivals in the Asian session on Thursday, as traders reacted positively to cooler-than-expected U.S. inflation data in the month of June, which eased concerns about the outlook for interest rates. The report also showed a notable slowdown in the annual rate of U.S. consumer price growth.

While the U.S. Fed is still widely expected to raise interest rates by another quarter point later this month, the data has led to renewed optimism that will be the end of the central bank's rate-hiking cycle.

Data from the labor Department on Wednesday, showed that the consumer price index rose by 0.2 percent in June after inching up by 0.1 percent in May. Economists had expected consumer prices to climb by 0.3 percent.

The report also showed the annual rate of consumer price growth slowed to 3.0 percent in June from 4.0 percent in May. Economists had expected the rate of growth to slow to 3.1 percent.

Also, the crude oil traded higher in reaction to the softer-than-expected U.S. inflation data. The Brent oil futures for September were at $80.42, up by 0.39 percent. The crude oil futures on WTI (West Texas Intermediate) for August were at $76.03, up by 0.37 percent.

In the Asian trading today, the Australian dollar rose to a 1-week high of 1.6345 against the euro and a 2-day high of 94.42 against the yen, from yesterday's closing quotes of 1.6395 and 94.01, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.59 against the euro and 97.00 against the yen.

Against the U.S. and the Canadian dollars, the aussie advanced to more than 3-week highs of 0.6820 and 0.8982 from yesterday's closing quotes of 0.6786 and 0.8952, respectively. The aussie may test resistance around 0.71 against the greenback and 0.90 against the loonie.

The NZ dollar rose to more than a 2-month high of 0.6339 against the U.S. dollar and a 1-week high of 1.7585 against the euro, from yesterday's closing quotes of 0.6295 and 1.7677, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.64 against the greenback and 1.72 against the euro.

Against the yen and the Australian dollar, the kiwi advanced to 2-day highs of 87.74 and 1.0754 from yesterday's closing quotes of 87.18 and 1.0773, respectively. On the upside, 90.00 against the yen and 1.05 against the aussie are seen as the next resistance levels for the kiwi.

Meanwhile, the U.S. dollar declined against its major rivals in the Asian session today, as investor sentiment reacted positively to cooler-than-expected U.S. inflation data.

The U.S. dollar fell to an 8-1/2 year low of 0.8651 against the Swiss franc and nearly a 2-month low of 138.07 against the yen, from yesterday's closing quotes of 0.8669 and 138.49, respectively. If the greenback extends its downtrend, it is likely to find support around 0.84 against the franc and 133.00 against the yen.

Against the euro and the pound, the greenback dropped to near 1-1/2-year lows of 1.1149 and 1.3019 from yesterday's closing quotes of 1.1130 and 1.2987, respectively. The greenback may test support near 1.13 against the euro and 1.33 against the pound.

The greenback edged down to 1.3166 against the Canadian dollar, from Wednesday's closing value of 1.3186. On the downside, 1.29 is seen as the next support level for the greenback.

Looking ahead, Eurozone industrial production for May and European Union summer economic forecast are due to be released in the European session.

At 7:30 am ET, the European Central Bank will publish the account of the monetary policy meeting of the governing council held on June 14 and 15.

At 8:00 am ET, U.K. NIESR GDP estimate for June is set to be published.

In the New York session, U.S. PPI for June, U.S. weekly jobless claims data and U.S. Federal monthly budget balance report for June are slated for release.

At 5:45 pm ET, U.S. Federal Reserve Board Governor Christopher Waller will deliver a speech on the economic outlook before the Money Marketeers of New York University, in U.S.