Antipodean Currencies Rise Amid Risk Appetite

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars strengthened against their major counterparts in the Asian session on Thursday amid risk appetite, following the broadly positive cues from global markets overnight, amid optimism about the outlook for U.S. interest rates after a report showed U.S. private sector job growth slowed by more than expected in the month of May. Treasury yields also extended the recent downward trend.

Gains across most sectors led by gold miners and technology stocks, also led to the upturn of the investor sentiment.

Crude oil prices bounced higher from four-month lows after OPEC decided not to extend production cuts. West Texas Intermediate for July delivery was up $1.04 or 1.42 percent to $74.29 per barrel.

In the Asian trading today, the Australian dollar rose to a 14-month high of 0.9135 against the Canadian dollar, from yesterday's closing value of 0.9103. The aussie may test resistance near the 0.92 region.

Against the U.S. dollar and the euro, the aussie advanced to 2-day highs of 0.6683 and 1.6298 from Wednesday's closing quotes of 0.6647 and 1.6350, respectively. The aussie may test resistance near 0.67 against the greenback and 1.62 against the euro.

The aussie edged up to 103.98 against the yen, from yesterday's closing value of 103.77. On the upside, 105.00 is seen as the next resistance level for the aussie.

The NZ dollar rose to nearly a 3-month high of 0.6215 against the U.S. dollar, from yesterday's closing value of 0.6193. The next resistance level for the kiwi is seen around the 0.63 region.

The kiwi edged up to 96.74 against the yen, from Wednesday's closing value of 96.63. On the upside, 99.00 is seen as the next resistance level for the kiwi.

Against the euro and the Australian dollar, the kiwi advanced to nearly a 3-1/2-month high of 1.7525 and nearly a 2-1/2-month high of 1.0734 from yesterday's closing quotes of 1.7525 and 1.0734, respectively. If the kiwi extends its downtrend, it is likely to find resistance around 1.73 against the euro and 1.06 against the aussie.

Looking ahead, Eurozone retail sales data for April is due to be released at 5:00 am ET in the European session.

At 8:15 am ET, the European Central Bank will announce its monetary policy decision. The bank is widely expected to cut its key interest rates, ending the rate hiking cycle that began in mid-2022.

At the governing council meeting in Frankfurt, policymakers are set to lower the main refinancing rate, the deposit facility rate and the lending rate by 25 basis points each.

Following the meeting, ECB Chief Christine Lagarde holds press conference at 8:45 am ET.

In the New York session, U.S. and Canada trade data for April, U.S. weekly jobless claims data and Canada Ivey PMI for May are slated for release.