Antipodean Currencies Rise Amid Positive Risk Tone

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars strengthened against their major counterparts in the Asian session on Tuesday amid a positive risk tone by the investors, after reports the U.S. is considering pausing the 25 percent tariffs on auto imports and decided to exempt certain consumer electronics from its so-called reciprocal tariffs.

However, both U.S. President Donald Trump and U.S. Commerce Secretary Howard Lutnick clarified that smartphones, computers and popular consumer electronics will come under separate tariffs, along with semiconductors, that may be imposed in a month or so.

Adding to the uncertainty surrounding tariffs, Trump claimed in a post on Truth Social that there was "no Tariff 'exception' announced," noting the products are still subject to existing 20 percent fentanyl tariffs are just moving to a "different Tariff 'bucket."

"NOBODY is getting 'off the hook' for the unfair Trade Balances, and Non-Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!" Trump said.

U.S. recession fears and U.S. Fed rate cut bets, also triggered to the upturn of AUD and NZD.

Crude oil prices ticked higher on Monday on concerns that supply may not be able to keep up with demand. West Texas Intermediate for May delivery was up $0.29 or 0.47 percent to $61.82 per barrel.

In economic news, the minutes of the April meeting showed that the policymakers of the Reserve Bank of Australia (RBA)said it is important to remain alert to the evolving balance of risks and concluded that the May meeting would be an opportune time to revisit the monetary policy setting.

Members judged that it was not appropriate at this stage for monetary policy to react to the potential risks that could move outcomes in either direction, the minutes said.

At the April meeting, the bank had retained its interest rate at 4.10 percent. Previously, the bank had reduced the rate by a quarter-point in February.

Data from Stats NZ showed that the New Zealand food inflation accelerated to a 14-month high in March. Food prices grew 3.5 percent on a yearly basis in March, faster than the 2.4 percent increase in February. The rate was the strongest since January 2024.

On a monthly basis, food prices moved up 0.5 percent, in contrast to the 0.5 percent fall in February.

In the Asian trading today, the Australian dollar rose to a 5-day high of 1.7814 against the euro, from yesterday's closing value of 1.7941. The aussie may test resistance around 1.71 region.

Against the U.S. and the Canadian dollars, the aussie advanced to near 2-week highs of 0.6378 and 0.8834 from Monday's closing quotes of 0.6319 and 0.8784, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.65 against the greenback and 0.91 against the loonie.

The aussie edged up to 91.19 against the yen, from Monday's closing value of 90.50. On the upside, 96.00 is seen as the next resistance level for the aussie.

The NZ dollar rose to nearly a 4-1/2-month high of 0.5928 against the U.S. dollar and a 4-day high of 1.0735 against the Australian dollar, from yesterday's closing quotes of 0.5865 and 1.0774, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.60 against the greenback and 1.06 against the aussie.

Against the yen and the euro, the kiwi advanced to near 2-week highs of 84.81 and 1.9330 from Monday's closing quotes of 84.00 and 1.9329, respectively. The kiwi is likely to find resistance around 87.00 against the yen and 1.86 against the euro.

Looking ahead, German ZEW economic confidence survey results for April and euro area industrial production for February are slated for release in the European session.

In the New York session, Canada housing starts and CPI data for March, manufacturing sales data for February, U.S. export and import prices for March, U.S. NY Empire State manufacturing index for April and U.S. NOPA Crush report, are set to be published.