Commodity Currencies Strengthen Amid Risk Appetite On China Data
February 13 2019 - 11:20PM
RTTF2
The commodity currencies such as the Australian, the New Zealand
and the Canadian dollars climbed against their major counterparts
in early European deals on Thursday, as European shares rose amid
positive earnings results and stronger-than-expected Chinese trade
data for January.
Chinese exports grew 9.1 percent in January from a year earlier,
surprising economists who had expected exports to shrink for the
second month in a row. Imports declined 1.5 percent.
Investors focused on U.S.-China trade talks that kicked off in
Beijing in a bid to de-escalate a tariff war ahead of a March 1
deadline for a deal.
A report from the South China Morning Post said Chinese
President Xi Jinping would meet Washington's top trade envoys,
including Trade Representative Robert Lighthizer and Treasury
Secretary Steven Mnuchin, in Beijing on Friday.
Oil prices rose on trade-deal optimism after U.S. President
Donald Trump said talks were going "very well".
The aussie strengthened to 8-day highs of 79.24 against the yen
and 1.5822 against the euro, off its early lows of 78.56 and
1.5895, respectively. The aussie is seen finding resistance around
81.5 against the yen and 1.56 against the euro.
The aussie appreciated to a 3-day high of 0.9438 against the
loonie, reversing from a low of 0.9391 hit at 5:00 pm ET. If the
aussie rises further, 0.96 is possibly seen as its next resistance
level.
The aussie bounced off to 0.7132 against the greenback, from an
early 2-day low of 0.7085. On the upside, 0.74 is likely seen as
the next resistance level for the aussie.
The NZ currency firmed to near a 2-month high of 76.01 against
the yen and more than a 2-month high of 1.6484 against the euro,
from its previous lows of 75.40 and 1.6576, respectively. The next
possible resistance for the kiwi is seen around 78.00 against the
yen and 1.62 against the euro.
The kiwi edged up to 0.6844 against the greenback, from a low of
0.6793 seen at 5:30 pm ET. Next key resistance for the kiwi is seen
around the 0.70 region.
The kiwi reversed from an early low of 1.0432 against the
aussie, recovering to 1.0412. The kiwi is poised to test resistance
around the 1.03 mark.
The loonie spiked up to a 9-day high of 83.97 against the yen
and a 2-1/2-month high of 1.4916 against the euro, coming off from
its early lows of 83.58 and 1.4948, respectively. The loonie is
likely to challenge resistance around 84.5 against the yen and 1.47
against the euro.
Following a 2-day decline to 1.3269 at 5:30 pm ET, the loonie
bounced off to 1.3229 against the greenback. Further uptrend may
take the loonie to a resistance around the 1.30 area.
Looking ahead, Eurozone GDP and employment data for the fourth
quarter are scheduled in the European session.
Canada manufacturing sales and new housing price index for
December, U.S. weekly jobless claims for the week ended February 9,
retail sales for December, business inventories for November and
producer price index for January are due in the New York
session.
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