Antipodean Currencies Rise Amid Risk-on Mood

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars strengthened against other major currencies in the Asian session on Friday amid increased risk-on mood by the investors, following the broadly positive cues from Wall Street overnight, as traders hope for an end to the tariff uncertainty after U.S. President Donald Trump confirmed he will not extend the August 1 deadline for striking trade deals, though he continues to threaten higher reciprocal tariffs on various sectors and countries.

In search of new momentum, traders will keep a careful eye on the U.S. trade headlines.

Data from BusinessNZ showed that the manufacturing sector in New Zealand continued to contract in June, albeit at a slower rate, with a Performance of Manufacturing Index score of 48.8. That's up from the downwardly revised 47.4 in May.

In the Asian trading today, the Australian dollar rose to nearly a 5-month high of 96.81 against the yen and more than a 3-week high of 1.7720 against the euro, from yesterday's closing quotes of 96.44 and 1.7748, respectively. If the aussie extends its uptrend, it is likely to find resistance around 98.00 against the yen and 1.72 against the euro.

Against the Canada and the New Zealand dollars, the aussie climbed to nearly a 2-month high of 0.9023 and more than a 3-month high of 1.0943 from Thursday's closing quotes of 0.9003 and 1.0915, respectively. On the upside, 0.91 against the loonie and 1.10 against the kiwi are seen as the next resistance levels for the aussie.

The aussie edged up to 0.6595 against the U.S. dollar, from an early low of 0.6556. The next possible upside target for the aussie is seen around the 0.67 region.

The NZ dollar rose to nearly a 6-month high of 88.63 against the yen and a 1-week high of 1.9356 against the euro, from yesterday's closing quotes of 88.36 and 1.9372, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 91.00 against the yen and 1.92 against the euro.

Against the U.S. dollar, the kiwi edged up to 0.6042 from an early low of 0.6008. The kiwi may test resistance near the 0.61 region.

Looking ahead, U.K. NIESR monthly GDP tracker for June, Canada jobs data for June, building permits for May, U.S. Baker Hughes oil rig count data, U.S. WASDE report and U.S. monthly budget statement for June are slated for release in the New York session.