Australian, NZ Dollars Higher Amid U.S. Stimulus Approval
The Australian and NZ dollars climbed against their major
counterparts in the Asian session on Thursday amid rising risk
appetite, as the U.S. House of Representatives passed the $1.9
trillion coronavirus relief package and a tame U.S. consumer
inflation data aided a retreat in U.S. bond yields.
U.S. inflation data reduced concerns about an overheating of the
U.S. economy and helped U.S. Treasury yields to stabilize.
The U.S. House of Representatives voted 220-211 to pass COVID-19
relief package and send it to President Biden's desk for
Focus will also be on the auction of 30-year U.S. Treasuries
after an auction of 10-year notes on Wednesday drew sufficient
Data from Statistics New Zealand showed that New Zealand food
prices rose 1.2 percent on year in February - after gaining an
annual 2.1 percent in the previous month.
On a monthly basis, food prices were down 0.9 percent unadjusted
and 0.6 percent seasonally adjusted.
The aussie advanced to 1-week highs of 0.7763 against the
greenback and 0.9797 against the loonie, up from its early lows of
0.7723 and 0.9747, respectively. The currency is likely to face
resistance around 0.80 against the greenback and 0.99 against the
The aussie appreciated to 2-week highs of 84.45 against the yen
and 1.5362 against the euro, after falling to 83.74 and 1.5431,
respectively in early deals. If the aussie rises further, 86.00 and
1.50 are likely seen as its next resistance levels against the yen
and the euro, respectively.
The Australian currency recovered to 1.0760 versus the kiwi,
from a 2-day low of 1.0735 it touched at 5 pm ET. On the upside,
1.09 is possibly seen as its next resistance level.
The kiwi climbed to a 1-week high of 0.7221 against the
greenback, 2-week high of 78.51 against the yen and near a 2-week
high of 1.6525 against the euro, off its early lows of 0.7181,
77.78 and 1.6588, respectively. The kiwi is seen finding resistance
around 0.74 against the greenback, 80.00 against the yen and 1.62
against the euro.
Looking ahead, the State Secretariat for Economic Affairs
publishes Swiss economic forecasts at 3.00 am ET.
The European Central Bank will announce interest rate decision
at 7:45 am ET. The ECB is expected to hold its main refi rate at a
record low zero percent and the deposit rate at -0.50 percent.
In the New York session, U.S. weekly jobless claims for the week
ended March 6 are scheduled for release.