Forex News: Commodity Currencies Advance Amid Improving Market Sentiment

Commodity Currencies Advance Amid Improving Market Sentiment

(RTTNews) - The commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against their major counterparts in the Asian session on Wednesday amid improving risk sentiment, following global trade developments as markets await potential trade deals between the U.S. and its partners ahead of the August 1 deadline.

Market sentiment also improved after U.S. President Donald Trump's announcement of a "massive" trade deal with Japan eased concerns about the tariff war.

U.S. President Donald Trump has threatened nations with an enormous 35% tariff on its imports to the U.S. if a deal is not reached by August 1, with countries forcing themselves to arrive at a "good deal."

Trump has threatened to hit most of the EU bloc's exports with 30% tariffs, leaders are focused to avert the enormous levies. Reports suggest that the bloc is planning to retaliate if the ongoing talks fail.

In economic news, data from Westpac-Melbourne institute showed that Australia's Leading Index's six-month annualized growth rate decreased from 0.11 percent in May to 0.03 percent in June.

In the Asian trading today, the Australian dollar rose to 8-day high of 0.6569 against the U.S. dollar and a 2-day high of 96.56 against the yen, from yesterday's closing quotes of 06554 and 96.17, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.66 against the greenback and 98.00 against the yen.

Against the euro and the Canadian dollar, the aussie edged up to 1.7881 and 0.8929 from Tuesday's closing quotes of 1.7913 and 0.8915, respectively. The aussie may test resistance around 1.77 against the euro and 0.90 against the loonie.

The NZ dollar rose to a 9-day high of 0.6015 against the U.S. dollar, from Tuesday's closing value of 0.5999. The next possible resistance level for the kiwi is seen around the 0.61 region.

Against the yen and the euro, the kiwi advanced to 2-day highs of 88.35 and 1.9530 from yesterday's closing values of 88.03 and 1.9569, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 89.00 against the yen and 1.93 against the euro.

Against the Australian dollar, the kiwi edged up to 1.0931 from yesterday's closing value of 1.0925. On the upside, 1.10 is seen as the next resistance level for the kiwi.

The Canadian dollar rose to nearly a 3-week high of 1.3594 against the U.S. dollar, from Tuesday's closing value of 1.3605. The loonie may test resistance around the 1.34 region.

Against the yen and the euro, the loonie advanced to 2-day highs of 108.24 and 1.5955 from yesterday's closing quotes of 107.88 and 1.5969, respectively. If the loonie extends its uptrend, it is likely to find resistance around 109.00 against the yen and 1.58 against the euro.

Looking ahead, Canada new housing price index for June, U.S. MBA mortgage approvals data, U.S. existing home sales for June, U.S. EIA crude oil data and Eurozone flash consumer confidence for July are slated for release in the New York session.

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