Australian, NZ Dollars Advance Amid Improved Sentiment
The Australian and NZ dollars appreciated against their major
counterparts in the Asian session on Monday, as silver prices
rallied amid a surge in demand by retail investors, easing some of
the concerns over the volatile trading seen last week.
Investors shifted attention to silver, which has climbed nearly
15 percent since Thursday, after the retail trading frenzy that had
shot up the stock value of a struggling video-game retailer
The People's Bank of China injected funds into money markets in
an attempt to avoid a liquidity squeeze.
The latest survey from the Australian Industry Group revealed
that the manufacturing sector in Australia continued to expand in
December and January, and at a faster pace, with a combined
seasonally adjusted Performance of Manufacturing Index score of
That's up from 52.1 in November and it moves further above the
boom-or-bust line of 50 that separates expansion from
Data from the Australian Bureau of Statistics showed that the
value of owner-occupied home loans in Australia climbed a
seasonally adjusted 8.7 percent on month in December, coming in at
That follows the 5.5 percent increase in November.
The aussie advanced to 0.7663 against the greenback, 80.21
against the yen and 1.5832 against the euro, after falling to 4-day
lows of 0.7606, 79.69 and 1.5936, respectively in early deals. The
next possible resistance for the aussie is seen around 0.70 against
the greenback, 82.00 against the yen and 1.54 against the euro.
The aussie bounced off to 1.0644 against the kiwi, from its
previous 1-1/2-month low of 1.0623. If the aussie rises further, it
may find resistance around the 1.09 level.
The Australian currency edged up to 0.9780 against the loonie,
up from near a 5-week low of 0.9741 seen at 5:00 pm ET. The aussie
is seen finding resistance around the 0.99 level.
The kiwi rose to 75.41 against the yen, 0.7203 against the
greenback and 1.6841 against the euro, off its early low of 74.92
and 4-day lows of 0.7150 and 1.6950, respectively. The kiwi is
poised to find resistance around 78.00 against the yen, 0.74
against the greenback and 1.66 against the euro.
Looking ahead, PMI reports from major European economies and
U.K. mortgage approvals and Eurozone jobless rate for December are
due in the European session.
In the New York session, U.S. ISM manufacturing PMI for January
and construction spending for December are set for release.