Antipodean Currencies Rise Amid Risk-on Mood

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars strengthened against their major counterparts in the Asian session on Friday amid increased risk-on mood, as traders reacted to upbeat economic data from the U.S. and Japan that renewed optimism about the global economy. Countries are also hustling to strike trade deals with the U.S. as the August 1 deadline for pausing of "reciprocal tariffs" is less than a fortnight away.

Data showed U.S. retail sales rebounded by much more than expected in the month of June and import prices in the U.S. inched up by less than expected in the month of June.

Also, the investors reacted to comments from several Federal Reserve officials.

Federal Reserve Governor Christopher Waller said the U.S. central bank should cut interest rates this month to support a labor market that is showing signs of weakness.

Fed Bank of San Francisco President Mary Daly reiterated that it's reasonable to expect two interest rate cuts before the end of the year.

Fed Governor Adriana Kugler said it's appropriate to keep rates steady "for some time," as tariffs start to boost prices.

Crude oil prices increased as fresh tension brewing in the Middle East generated demand, while a drop in U.S. inventories was seen as reflecting robust summer demand. West Texas Intermediate crude for August delivery surged $1.16 to settle at $67.54 per barrel.

In the Asian trading today, the Australian dollar rose to 1.7860 against the euro and 96.74 against the yen, from yesterday's closing quotes of 1.7876 and 96.46, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.76 against the euro and 98.00 against the yen.

Against the U.S. and the Canadian dollars, the aussie edged up to 0.6511 and 0.8944 from Thursday's closing quotes of 0.6498 and 0.8926, respectively. The aussie may test resistance around 0.66 against the greenback and 0.90 against the loonie.

The NZ dollar rose to a 4-day high of 1.0916 against the Australian dollar, from yesterday's closing value of 1.0933. On the upside, 1.07 is seen as the next resistance level for the kiwi.

Against the U.S. dollar, the yen and the euro, the kiwi advanced to 2-day highs of 0.5964, 88.61 and 1.9502, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.60 against the greenback, 89.00 against the yen and 1.92 against the euro.

Looking ahead, U.S. building permits and housing starts for June, U.S. University of Michigan's consumer sentiment index for July and U.S. Baker Hughes oil rig count data are slated for release in the New York session.