Australian, NZ Dollars Higher Amid Rising Asian Shares
The Australian and NZ dollars climbed against their major
counterparts in the Asian session on Monday, as global bonds
stabilized following last week's sharp losses and the U.S. House of
Representatives approved a $1.9 trillion coronavirus relief
package, boosting demand for riskier assets.
The U.S. House passed the $1.9 trillion coronavirus relief
package on Saturday. The bill now moves to the Senate, where a vote
could happen as early as next week.
The approval of Johnson & Johnson's COVID-19 shot triggered
hopes of a faster recovery from pandemic.
Oil prices rebounded ahead of a highly anticipated OPEC+ meeting
this week, which is likely to raise production amid falling
Japanese manufacturing activity expanded at the fastest pace in
over two years, in an indication that the region's economy was
recovering gradually from the initial blow of the pandemic.
In economic news, the manufacturing sector in Australia
continued to expand in February, albeit at a slower pace, the
latest survey from Markit Economics showed with a manufacturing PMI
score of 56.9. That's down from January's 37-month high of 57.2,
although it remains above the boom-or-bust line of 50 that
separates expansion from contraction.
The manufacturing sector in Australia also continued to expand
in February, and at a faster pace, the latest survey from the
Australian Industry Group showed with a Performance of
Manufacturing Index score of 58.8. That's the highest reading since
March of 2018 and is up from 55.3 in January and it moves further
above the boom-or-bust line of 50 that separates expansion from
Meanwhile, the Australian Bureau of Statistics said that company
profits in Australia tumbled a seasonally adjusted 6.6 percent on
quarter in the fourth quarter of 2020, well shy or expectations for
a decline of 4 percent following the 3,2 percent increase in the
third quarter. Business inventories were flat on quarter, shy of
expectations for an increase of 0.2 percent after slipping 0.3
percent in the previous three months. On a yearly basis, profits
were up 15.1 percent and inventories sank 4.6 percent.
The Australian Bureau of Statistics also said that the total
value of owner-occupied housing loans jumped a seasonally adjusted
10.9 percent on month in January, coming in at A$22.11 billion.
Investment lending climbed 9.4 percent to A$6.64 billion, while
overall lending rose 10.5 percent to A$28.75 billion.
The aussie advanced to 0.7773 against the greenback and 82.83
against the yen, up from its early lows of 0.7706 and 82.09,
respectively. The aussie is seen finding resistance around 0.82
against the greenback and 87.00 against the yen.
The aussie reversed from its early lows of 1.5664 against the
euro and 0.9804 against the loonie, gaining to 1.5561 and 0.9863,
respectively. If the aussie rises further, it may find resistance
around 1.49 against the euro and 1.00 against the loonie.
The NZ currency appreciated to 0.7287 against the greenback,
77.72 against the yen and 1.6584 against the euro, after falling to
0.7230, 77.04 and 1.6689, respectively in early deals. The next
possible resistance for the kiwi is seen around 0.74 against the
greenback, 79.00 against the yen and 1.62 against the euro.
The kiwi edged up to 1.0644 against the aussie earlier in the
session and held steady thereafter. The pair had ended last week's
deals at 1.0646.
Looking ahead, PMI reports from major European economies and
U.K. mortgage approvals for January are due in the European
At 8:00 am ET, German flash consumer inflation for February will
U.S. ISM manufacturing PMI for February and construction
spending for January are set for release in the New York