Forex News: Commodity Currencies Rise Amid Risk-appetite, USD Slides

Commodity Currencies Rise Amid Risk-appetite, USD Slides

(RTTNews) - The commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against their major currencies in the Asian session on Thursday amid risk appetite, as traders continue to express optimism about the outlook for interest rates following the recent dovish comments from some US Fed officials.

In the recent days, New York Fed President John Williams, Fed Governor Christopher Waller, and San Francisco Fed President Mary Daly have voiced their preference for lowering rates further, reinforcing expectations for a rate cut.

CME Group's FedWatch Tool is currently indicating that investors are betting on an 84.7% chance of a 25-basis-point interest rate cut at the Federal Reserve's December 9-10 meeting. This has soared from just 30.1 percent a week ago.

Investor confidence was also boosted following reports indicating that Kevin Hassett, who favors lowering interest rates, may become the next U.S. Fed Chair as the current Chair's term expires in May 2026. Hassett's economic perspectives align much with that of U.S. President Donald Trump, who is in favor of a low-interest rate regime. Crude oil prices rose as doubts were cast on the possible success of the new U.S. proposal to end the Russia-Ukraine war. West Texas Intermediate crude for January delivery was up $0.61 or 1.05 percent at $58.56 per barrel.

In economic news, the value of new private capital expenditure in Australia was up a seasonally adjusted6.4 percent on quarter in the third quarter of 2025, the Australian Bureau of Statistics said on Thursday - coming in at A$48.999 billion. That beat forecasts for an increase of 0.6 percent and was up from 0.2 percent in the three months prior. On a yearly basis, capex was up 6.9 percent.

Data from Statistics New Zealand showed that the total volume of retail sales in New Zealand was up a seasonally adjusted 1.9 percent on quarter in the third quarter of 2025, beating forecasts for an increase of 0.6 percent following the 0.5 percent gain in the previous three months.

Core retail sales improved 1.2 percent on quarter, again topping expectations for 0.8 percent and up from 1.0 percent in the three months prior.

The total value of seasonally adjusted retail sales was NZ$31 billion, up 1.7 percent (NZ$521 million) on quarter.

In the Asian trading today, the Australian dollar rose to a 1-week high of 1.7745 against the euro, from yesterday's closing value of 1.7791. The aussie may test resistance around the 1.75 region.

Against the U.S. and the Canadian dollars, the aussie advanced to near 2-week highs of 0.6540 and 0.9173 from Wednesday's closing quotes of 0.6518 and 0.9152, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.66 against the greenback and 0.92 against the loonie.

The aussie edged up to 102.05 against the yen, from yesterday's closing value of 101.99. On the upside, 103.00 is seen as the next resistance level for the aussie.

The NZ dollar rose to nearly a 1-year high of 89.49 against the yen, from yesterday's closing value of 89.17. The kiwi is likely to find resistance around the 90.00 region.

Against the U.S. dollar, the euro and the Australian dollar, the kiwi advanced to near 4-week highs of 0.5732, 2.0245 and 1.1399 from Wednesday's closing quotes of 0.5699, 2.0349 and 1.1438, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.58 against the greenback, 1.99 against the euro and 1.12 against the aussie.

The Canadian dollar rose to an 8-day high of 1.4029 against the U.S. dollar and a 2-day high of 1.6258 against the euro, from yesterday's closing quotes of 1.4044 and 1.6284, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.39 against the greenback and 1.61 against the euro.

Against the yen, the loonie edged up to 111.36 from Wednesday's closing value of 111.43. The loonie may test resistance around the 113.00 region.

Meanwhile, the safe-haven U.S. dollar weakened against other major currencies in the Asian session amid rising bets on interest rate cut by the U.S. Federal Reserve.

The U.S. dollar fell to nearly a 2-week low of 1.1614 against the euro, nearly a 1-month low of 1.3268 against the pound and an 8-day low of 0.8026 against the Swiss franc, from yesterday's closing quotes of 1.1595, 1.3242 and 0.8043, respectively.

Against the yen, the greenback, the greenback edged down to 155.72 from Wednesday's closing value of 156.48. The greenback may test support near the 153.00 region.

Looking ahead, Eurozone economic sentiment for November is due to be released at 5:00 am ET in the European session.

In the New York session, Canada current account data for the third quarter and average weekly earnings for September are due to be released.

U.S. stock markets are closed in observance of Thanksgiving Day holiday.

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