Forex News: Commodity Currencies Rise Amid Risk-Appetite

Commodity Currencies Rise Amid Risk-Appetite

(RTTNews) - The commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against their major peers in the Asian session on Wednesday, as Asian markets traded higher after Trump hailed his "good relationship" with his Chinese counterpart Xi Jinping, adding that a deal with China was taking shape.

Investors look forward to U.S. President Donald Trump's decision on Federal Reserve appointments. By the end of the week, Trump might reveal a nominee to fill the vacancy on the Fed's Board of Governors.

Oil prices edged up on rising OPEC+ supply and worries of weaker global demand.

The Australian dollar strengthened earlier against its major peers, following the release of improved domestic economic data.

Australia's Ai Group Industry Index rose by 5.8 points to -3.2, marking its highest level in three years. The reading suggested a slow rebound trend in private-sector performance. Concurrently, the Ai Group Manufacturing PMI increased by 4.9 points to -23.9 in July, suggesting a minor enhancement but still indicating a significant contraction in the industry.

The growing speculation of an interest rate cut by the U.S. Federal Reserve (Fed) in September, also led to the upturn of the commodity-linked currencies like AUD, NZD and CAD. Markets persisted in indicating a greater than 90% likelihood of a Fed rate reduction in September, with about 60 basis points of overall easing anticipated by the end of the year.

In other economic news, data from Statistics New Zealand showed that the unemployment rate in New Zealand came in at a seasonally adjusted 5.2 percent in the second quarter of 2025. That was lower than forecasts for 5.3 percent but still higher than 5.1 percent in the three months prior.

New Zealand employment shed 0.1 percent on quarter, in line with expectations after adding 0.1 percent in the previous quarter.

In the Asian trading today, the Australian dollar advanced to a 1-week high of 0.6495 against the U.S. dollar, from Tuesday's closing value of 0.6472. The aussie may test resistance around the 0.66 region.

The aussie rose to 5-day highs of 95.90 against the yen, 1.7822 against the euro and 0.8943 against the Canadian dollar, from yesterday's closing quotes of 95.48, 1.7891 and 0.8913, respectively. If the aussie extends its uptrend, it is likely to find resistance around 97.00 against the yen, 1.76 against the euro and 0.91 against the loonie.

Against the NZ dollar, the aussie edged up to 1.0966 from Tuesday's closing value of 1.0955. The next possible upside target for the aussie is seen around the 1.10 region.

The NZ dollar rose to a 2-day high of 1.9541 against the euro, from yesterday's closing value of 1.9599. On the upside, 1.92 is seen as the next resistance level for the kiwi.

Against the U.S. dollar and the yen, the kiwi advanced to 2-day highs of 0.5927 and 87.46 from Tuesday's closing quotes of 0.5908 and 87.16, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.61 against the greenback and 89.00 against the yen.

The Canadian dollar rose to 1.5930 against the euro, from yesterday's closing value of 1.5946. The loonie may test resistance around the 1.57 region.

Against the U.S. dollar and the yen, the loonie edged up to 1.3764 and 107.27 from Tuesday's closing quotes of 1.3772 and 107.13, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.35 against the greenback and 109.00 against the yen.

Looking ahead, U.S. weekly mortgage approvals data, Canada S&P Global PMI reports for July and U.S. EIA crude oil data are slated for release in the New York session.

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