Commodity Currencies Rise As Asian Shares Rebound On Tempered Middle East Fears

(RTTNews) - Commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against their major currencies in the Asian session on Monday amid risk appetite, as fears of a wider conflict in the Middle East ebbed.

Investors gravitated back towards riskier assets after Iran played down Israel's reported retaliatory attacks on its soil.

Meanwhile, a continued drop in oil prices on growth concerns and signs of rising inventory in the United States helped ease investor concerns surrounding inflation and interest rates.

In the Asian trading today, the Australian dollar rose to a 1-week high of 99.83 against the yen and a 6-day high of 1.6530 against the euro, from Friday's closing quotes of 99.23 and 1.6598, respectively. The aussie may test resistance near 101.00 against the yen and 1.63 against the euro.

Against the U.S. and the Canadian dollars, the aussie advanced to 4-day highs of 0.6455 and 0.8855 from last week's closing quotes of 0.6417 and 0.8825, respectively. On the upside, 0.66 against the greenback and 0.89 against the loonie are seen as the next resistance level for the aussie.

The aussie edged up to 1.0907 against the NZ dollar, from Friday's closing value of 1.0887. The next possible upside target level for the aussie is seen around the 1.10 region.

The NZ dollar rose to nearly a 2-week high of 91.69 against the yen, from Friday's closing value of 91.08. The kiwi is likely to find its resistance level around the 92.00 region.

Against the U.S. dollar and the euro, the kiwi advanced to 4-day highs of 0.5929 and 1.7997 from last week's closing quotes of 0.5890 and 1.8076, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.61 against the greenback and 1.78 against the euro.

The Canadian dollar rose to a 16-year high of 112.80 against the yen, from Friday's closing value of 112.39. The loonie may test resistance around the 114.00 region.

Against the U.S. dollar and the euro, the loonie advanced to a 2-week high of 1.3715 and a 1-week high of 1.4624 from last week's closing quotes of 1.3753 and 1.4652, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.35 against the greenback and 1.45 against the euro.

Looking ahead, Canada new housing price index and PPI, for March, U.S. Chicago Fed National Activity for March and Eurozone flash consumer confidence for April are due to be released in the New York session.