Market Commentary and Intraday News

Australian And NZ Dollars Advance Amid Risk Appetite

243 days ago

(RTTNews) - The Australian and NZ dollars spiked up against their major counterparts in the Asian session on Friday amid a gain in stocks.

Asian markets rose as oil and copper rebounded and Apple Inc.'s iPhone 5 debut lifted tech shares. Investors are also closely watching whether China will join recent central bank actions to stimulate the economy.

Spanish and European Union officials are negotiating for a new rescue programme for Spain and ECB bond-buying programme, Financial Times reported.

The plan will focus on structural reforms to the Spanish economy instead of spending cuts and taxes, it added.

The aussie rebounded from more than a 5-month low of 1.2583 against the NZ dollar and the pair is now trading at 1.2611. The aussi-kiwi pair closed deals at 1.2591 on Thursday.

Against the U.S. dollar and the yen, the aussie gained to 1.0467 and 82.00 from yesterday's close of 1.0438 and 81.68, respectively. If the aussie rises further, it may target 82.5 against the yen and 1.05 against the greenback.

Japanese investors sold a net 289.4 billion yen in foreign stocks in the week ended September 15, the Ministry of Finance said.

Japanese residents also purchased a net 64.4 billion yen in bonds and notes last week.

The aussie climbed to its highest level against the euro in a week at 1.2394 with 1.235 seen as the next upside target level. The pair was quoted at 1.2431 at yesterday's close.

The aussie also firmed against its Canadian unit, hitting as high as 1.0211. The aussie-loonie pair ended yesterday's American session at 1.0199. The next resistance level for the aussie is seen at 1.025.

The NZ currency followed a similar pattern and hit 0.8307 against the U.S. dollar, its strongest level since September 17. On the upside, the kiwi-greenback pair may break 0.835 level. The pair traded at 0.8294 at Thursday's close.

Against the yen, the kiwi performed modestly, gaining to 65.06 from yesterday's closing value of 64.90. The kiwi is likely to target 65.5 level on the upside.

The kiwi hit a 1-week high of 1.5629 against the euro, compared to Thursday's close of 1.5646. The next upside target level for the kiwi is seen at 1.56.

In the European session, U.K. public finances data for August is due.

Canada CPI for August and wholesale sales report for July are expected at 8.30 am ET.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2012 RTTNews.com. All Rights Reserved

View all of today's news »