Commodity Currencies Rise Amid Risk-on Mood

(RTTNews) - The commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against other major currencies in the Asian session on Friday, as traders remain optimistic about a favorable outcome from the ongoing tariff negotiations between the U.S. and several partner countries, particularly China, Japan, South Korea and India. Comments from two U.S. Fed officials about cutting interest rates also improved market sentiment.

Hopes for a resolution in U.S.-China trade talks prevail despite Beijing saying there were "absolutely no negotiations on the economy and trade between China and the U.S.

"They had a meeting this morning," U.S. President Trump said Thursday about China. "It doesn't matter who 'they' is. We may reveal it later, but they had meetings this morning, and we've been meeting with China."

Crude oil prices showed a modest move back to the upside following the steep drop in the previous session. West Texas Intermediate crude for June delivery rose $0.16 or 0.3 percent to $62.43 a barrel after plunging $1.40 or 2.2 percent to $62.27 a barrel a day earlier.

In the Asian trading today, the Australian dollar rose to 3-week highs of 92.22 against the yen and 1.7651 against the euro, from yesterday's closing quotes of 91.43 and 1.7769, respectively. If the aussie extends its uptrend, it is likely to find resistance around 96.00 against the yen and 1.70 against the euro.

Against the U.S., the Canada and the New Zealand dollars, the aussie advanced to 2-day highs of 0.6420, 0.8900 and 1.0726 from Thursday's closing quotes of 0.6400, 0.8868 and 1.0689, respectively. The aussie may test resistance around 0.66 against the greenback, 0.91 against the loonie and 1.10 against the kiwi.

The NZ dollar rose to more than 3-week highs of 86.07 against the yen and 1.8911 against the euro, from yesterday's closing quotes of 85.54 and 1.8933, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 88.00 against the yen and 1.87 against the euro.

Against the U.S. dollar, the kiwi edged up to 0.5999, from Thursday's closing value of 0.5988. On the upside, 0.61 is seen as the next resistance level for the kiwi.

The Canadian dollar rose to a 2-day high of 1.5702 against the euro and nearly a 2-week high of 103.67 against the yen, from Thursday's closing quotes of 1.5757 and 103.11, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.55 against the euro and 105.00 against the yen.

Against the U.S. dollar, the loonie edged up to 1.38565 from an early low of 1.3889. The loonie may test resistance around the 1.35 region.

Looking ahead, Canada retail and manufacturing sales data for March, U.S. University of Michigan's consumer sentiment for April, Canada budget balance for February and U.S. Baker Hughes oil rig count data are slated for release in the New York session.