Australian, NZ Dollars Appreciate On Fed Policy, Biden's Stimulus Plan
The Australian and NZ dollars climbed against their major
counterparts in the Asian session on Thursday amid risk appetite,
as the Federal Reserve pledged to maintain ultra-easy policy and
President Joe Biden outlined ambitious plans to build America by
proposing $1.8 trillion in spending on education and
The Fed left interest rates and asset purchases unchanged but
acknowledged an improvement in the economy.
The Fed said that the rise in inflation is transitory and will
allow inflation to exceed 2 percent target before considering to
In his first address to Congress, Biden unveiled $1.8 trillion
spending plan on education, child care and other public
The package would be funded partly by tax hikes on wealthy
In economic news, data from the Australian Bureau of Statistics
showed that Australia's export prices jumped 11.2 percent on
quarter in the first quarter of 2021, after climbing 5.5 percent in
the fourth quarter.
Import prices were up 0.2 percent on quarter after sinking 1.0
percent in the fourth quarter and the first growth in import prices
since the fourth quarter of 2019.
On a yearly basis, export prices gained 8.6 percent and import
prices fell 6.2 percent as the exchange rate had a downward effect
The aussie climbed to 6-week highs of 0.7818 against the
greenback and 84.81 against the yen, off its early lows of 0.7782
and 84.49, respectively. The aussie is likely to challenge
resistance around 0.80 against the greenback and 87.00 against the
The aussie edged higher to 1.0743 against the kiwi, after
falling to 1.0715 at 5 pm ET. The aussie is seen finding resistance
around the 1.10 mark.
In contrast, the aussie eased to 0.9577 against the loonie and
1.5590 against the euro, reversing from its early high of 0.9607
and a 2-day high of 1.5537, respectively. Next key support for the
aussie is likely seen around 0.94 against the loonie and 1.60
against the euro.
The kiwi jumped to near a 2-month high of 0.7287 against the
greenback and a 6-week high of 79.04 against the yen, from its
prior lows of 0.7247 and 78.73, respectively. The kiwi is poised to
challenge resistance around 0.74 against the greenback and 80.00
against the yen.
The kiwi, however, reversed from an early 8-day high of 1.6671
against the euro and dropped to 1.6732. If the kiwi slides further,
1.69 is likely seen as its next support level.
Looking ahead, German jobless rate and Eurozone economic
confidence index for April will be featured in the European
At 8:00 am ET, German flash consumer inflation for April will be
U.S. GDP data for the first quarter, weekly jobless claims for
the week ended April 24 and pending home sales for March are due in
the New York session.