Commodity Currencies Rise Amid Risk-on Mood

(RTTNews) - The commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against their major currencies in the Asian session on Tuesday, as traders remain optimistic and keep a close eye on developments on the tariff front, with U.S. Treasury Secretary Scott Bessent reportedly said he believes an agreement in principle can reached on "17 or 18 important trade deals" the administration is currently negotiating.

Traders also seemed reluctant to make significant moves as they look ahead to the release of key earnings and economic news in the coming days, including the US monthly jobs report and the Fed's preferred readings on consumer price inflation.

The commodity-linked currencies such as the AUD, NZD and CAD rose against their peers with gains across most sectors led by iron ore miners and energy stocks.

The Canadian dollar (CAD) saw a slight increase following several reports showing that the Liberal Party, led by the Canadian Prime Minister Mark Carney, won Canada's federal election and was granted an unprecedented fourth term.

In the Asian trading today, the Australian dollar rose to a 4-day high of 1.7702 against the euro, from yesterday's closing value of 1.7747. The next possible upside target for the aussie is seen around the 1.71 region.

Against the U.S., the Canada and the New Zealand dollars, the aussie advanced to nearly a 5-month high of 0.6450, nearly a 4-week high of 0.8912 and nearly a 2-week high of 1.0785 from Monday's closing quotes of 0.6429, 0.8891 and 1.0766, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.66 against the greenback, 0.91 against the loonie and 1.09 against the kiwi.

The aussie edged up to 91.68 against the yen, from yesterday's closing value of 91.39. On the upside, 96.00 is seen as the next resistance level for the aussie.

The NZ dollar rose to a 4-day high of 0.5987 against the U.S. dollar, from yesterday's closing value of 0.5971. The kiwi may test resistance around the 0.60 region.

Against the yen, the kiwi edged up to 85.10 against yen from a recent 6-day low of 84.70. If the kiwi extends its uptrend, it is likely to find resistance around the 87.00 area.

The kiwi advanced to 1.9071 against the euro, from Monday's closing value of 1.9106. On the upside, 1.84 is seen as the next resistance level for the kiwi.

The Canadian dollar rose to a 6-day high of 1.3808 against the U.S. dollar, from yesterday's closing value of 1.3833. The loonie may test resistance around the 1.36 region.

Against the yen and the euro, the loonie advanced to 103.01 and 1.5755 from Monday's closing quotes of 102.80 and 1.5778, respectively. If the loonie extends its uptrend, it is likely to find resistance around 106.00 against the yen and 1.53 against the euro.

Looking ahead, Eurozone economic sentiment survey data for April is set to be published at 5:00 am ET in the European session.

In the New York session, U.S. house price index for February, U.S. Consumer Board's consumer confidence for April and U.S. Dallas Fed services index for April are slated for release.