Australian Dollar Rises On Upbeat Economic Data

(RTTNews) - The Australian dollar strengthened against other major currencies in the Asian session on Tuesday, after the release of data showing that the nation's consumer sentiment increased in April.

Data from Australia Westpac Melbourne Institute showed that Australia's consumer sentiment index rose to 85.8 in April, from 78.4 in March.

"This remarkable recovery can be largely attributed to RBA's decision to pause rate hikes during its April meeting, breaking a sequence of ten consecutive meetings with cash rate increases", Westpac Chief Economist Bill Evans said.

He also said that the consumer confidence reached its highest level since June 2022, although still 10.4% below April 2022, the month before the RBA Board began raising the cash rate.

Also, the Asian stocks traded mostly higher, as traders return to their desks after Easter holidays. Traders expect another Federal Reserve rate hike by 25 basis points at its May 2-3 meeting.

A closely watched inflation report as well as the release of minutes of the Fed's March meeting due this week may provide clear guidance about interest rates.

In the Asian trading today, the Australian dollar rose to a 5-day high of 1.6309 against the euro, from yesterday's closing value of 1.6352. The aussie may test resistance around the 1.58 area.

Against the yen and the NZ dollar, the aussie advanced to 6-day highs of 89.03 and 1.0714 from yesterday's closing quotes of 88.67 and 1.0674, respectively. If the aussie extends its uptrend, it is likely to find resistance around 91.00 against the yen and 1.08 against the kiwi.

The aussie edged up to 0.6674 against the U.S. dollar, from yesterday's closing value of 0.6641. On the upside, 0.68 is seen as the next resistance level for the aussie.

Moving away from an early near 5-month low of 0.8956 against the Canadian dollar, the aussie climbed to 0.9002. The AUD/CAD pair is likely to find its next resistance level around the 0.91 area.

Meanwhile, the safe-have yen came under pressure against other major rivals, as most Asian stocks traded higher.

The yen fell to nearly a 4-week low of 147.09 against the Swiss franc, from yesterday's closing value of 146.77. The yen may find its support around the 149.00 area.

Against the euro and the pound, the yen dropped to 1-week lows of 145.34 and 165.66 from yesterday's closing quotes of 145.01 and 165.36, respectively. If the yen extends its downtrend, it is likely to find support around 147.00 against the euro and 167.00 against the pound.

The yen edged down to 133.69 against the U.S. dollar, from yesterday's closing value of 133.58. The next support level for the yen is seen around the 141.00 area.

Against the New Zealand and the Canadian dollars, the yen dropped to a 6-day low of 83.19 and a 1-week low of 98.98 from early highs of 82.97 and 96.68, respectively. On the d ownside, 85.00 against the kiwi and 101.00 against the loonie are seen as the next support levels for the yen.

Looking ahead, Eurozone retail sales data for February and U.K. BBA mortgage rate for March are due to be released in the European session.