Forex News: Commodity Currencies Rise Amid Hopes For US-China Trade

Commodity Currencies Rise Amid Hopes For US-China Trade Deal

(RTTNews) - The commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against other major currencies in the Asian session on Wednesday, after U.S. President Donald Trump said tariffs on China would be trimmed down from the current 145 percent rate. Reports also indicate that Treasury Secretary Scott Bessent told a closed-door investor summit he expects the trade dispute between the U.S. and China to de-escalate.

Crude oil prices moved sharply higher after the Treasury Department announced new sanctions against Iran. West Texas Intermediate crude for May delivery surged $1.23 or 2.0 percent to $64.31 a barrel.

In economic news, the manufacturing sector in Australia continued to expand in April, albeit at a slower rate, the latest survey from S&P Global revealed on Wednesday with a manufacturing PMI score of 51.7. That's down from 52.1 in March, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. The services and composite PMIs both slipped to 51.4 in April from 51.6 in the previous month.

In the Asian trading today, the Australian dollar rose to a 6-day high of 1.7792 against the euro, from yesterday's closing value of 1.7806. The aussie may test resistance around the 1.70 area.

The aussie advanced to 91.02 against the yen, from Tuesday's closing value of 90.95. The next possible upside target for the aussie is seen around the 95.00 region.

Data from Jibun Bank showed that the manufacturing sector in Japan continued to contract in April, albeit at a slower rate, with a manufacturing PMI score of 48.5. That's up from 48.4 in March.

The survey also showed that the services PMI improved to 52.2 from 50.0 and the composite PMI climbed to 51.1 from 48.9 in March.

Against the U.S., the Canada and the New Zealand dollars, the aussie edged to 0.6405, 0.8853 and 1.0707 from yesterday's closing quotes of 0.6375, 0.8828 and 1.0699, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.66 against the greenback, 0.91 against the loonie and 1.10 against the kiwi.

The NZ dollar rose to 1.9035 against the euro and 0.5988 against the U.S. dollar, from yesterday's closing quotes of 1.9051 and 0.5960, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 1.86 against the euro and 0.61 against the greenback.

Against the yen, the kiwi edged up to 85.09 from Tuesday's closing value of 85.01. On the upside, 87.00 is seen as the next resistance level for the yen.

The Canadian dollar rose to 1.5715 against the euro and 103.08 against the yen, from recent lows of 1.5779 and 102.48, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.53 against the euro and 104.00 against the yen.

Against the U.S. dollar, the loonie edged up to 1.3820 from a recent low of 1.3848. The next possible upside target for the greenback is seen around the 1.36 region.

Looking ahead, PMI reports from various European economies and U.K. for April, Eurozone trade balance data and construction output data for February are slated for release in the European session.

In the New York session, U.S. MBA mortgage approvals data, Canada new housing price index for March, U.S. S&P Global PMI data for April, new house sales data for March, U.S. EIA crude oil data and U.S. Fed Beige book data are set to be published.

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