Forex News: Antipodean Currencies, Euro Strengthens Amid Risk Appetite

Antipodean Currencies, Euro Strengthens Amid Risk Appetite

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars, and the euro strengthened against their major counterparts in the Asian session on Thursday, as Asian stock markets traded higher, as traders reacted to the latest remarks from U.S. Fed officials that helped ease recent concerns about the outlook for interest rates. Fed Chair Jerome Powell reiterated during remarks at Stanford University that the central bank is not in a hurry to begin lowering interest rates, but reaffirmed his view that they will likely cut interest rates this year.

Gains in gold miners, technology and financial stocks, also improved the investor sentiment.

Crude oil prices climbed higher after OPEC ended its meeting without making any changes to its production policy. West Texas Intermediate Crude oil futures for May ended higher by $0.28 or 0.33 percent at $85.43 a barrel.

In economic news, the services sector in Australia continued to expand in March, and at a faster pace, the latest survey from Judo Bank revealed on Thursday with a services PMI score of 54.4. That's up from 53.1 in February, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

Meanwhile, the total number of building approvals issued in Australia was down a seasonally adjusted 1.9 percent on month in February, the Australian Bureau of Statistics said on Thursday - coming in at 12,520. That missed expectations for an increase of 3.0 percent following the 1.0 percent drop in January. On a yearly basis, overall approvals fell 5.8 percent. The value of total building approved fell 16.5 percent, following a 14.5 percent January increase.

Data from Statistics New Zealand showed that the total number of building permits issued in New Zealand was up a seasonally adjusted 14,9 percent on month in February, coming in at 2,795. That follows the 8.6 percent decline in January.

In the Asian trading today, the Australian dollar rose to nearly a 4-week high of 1.6462 against the euro and a 9-day high of 0.8902 against the Canadian dollar, from yesterday's closing quotes of 1.6505 and 0.8877, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.63 against the euro and 0.90 against the loonie.

Against the U.S. dollar and the yen, the aussie advanced to 2-week highs of 0.6588 and 99.92 from yesterday's closing quotes of 0.6563 and 99.55, respectively. The aussie may test resistance near 0.66 against the greenback and 100.00 against the yen.

The aussie edged up to 1.0928 against the NZ dollar, from Wednesday's closing value of 1.0918. On the upside, 1.10 is seen as the next resistance level for the aussie.

The NZ dollar rose to nearly a 2-week high of 1.7965 against the euro, from yesterday's closing value of 1.8025. The kiwi is likely to find its next support level around the 1.76 region.

Against the U.S. dollar and the yen, the kiwi advanced to near 2-week highs of 0.6038 and 91.55 from Wednesday's closing quotes of 0.6007 and 91.11, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.61 against the greenback and 93.00 against the yen.

The euro rose to a 9-day high of 1.0848 against the U.S. dollar and an 8-day high of 164.53 against the yen, from yesterday's closing quotes of 1.0835 and 164.35, respectively. If the euro extends its uptrend, it is likely to find resistance around 1.10 against the greenback and 166.00 against the yen.

Against the pound and the Swiss franc, the euro edged up to 0.8572 and 0.9801 from Wednesday's closing quotes of 0.8562 and 0.9783, respectively. The euro may test resistance near 0.86 against the pound and 0.99 against the franc.

Looking ahead, PMI reports from various European economies and U.K. for March, Eurozone PPI for February, are due to be released in the European session.

At 7:30 am ET, the ECB is set to publish the account of the monetary policy meeting of the Governing Council held on March 6 and 7.

In the New York session, U.S. weekly jobless data and U.S. and Canada trade data for February are slated for release.

At 12:15 pm ET, Federal Reserve Bank of Richmond President Thomas Barkin will give a new speech on the economic outlook before the Home Building Association of Richmond, in Richmond, U.S.

Half-an-hour later, Federal Reserve Bank of Chicago President Austan Goolsbee will participate in a moderated question-and-answer session before the Multi-Chamber Economic Outlook Luncheon and Expo , in Oak Brook, U.S.

At 2:00 pm ET, Federal Reserve Bank of Cleveland President Loretta Mester will participate in a conversation on the economic outlook before virtual Global Interdependence Center Executive Briefing, in Cleveland, U.S.

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