Forex News: Commodity Currencies Rise Amid Risk-on Sentiment

Commodity Currencies Rise Amid Risk-on Sentiment

(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 amid increased risk-on sentiment by the investors, boosted by strong gains in technology stocks which mirrored their peer on the tech-heavy Nasdaq amid easing concerns over potential artificial intelligence disruptions. Traders also remain concerned about the lingering uncertainty about U.S. President Donald Trump's tariff policies.

Concerns about the disruptive effects of AI eased somewhat after AI startup Anthropic PBC emphasized partnerships with companies, adding its Claude chatbot technology will integrate with, rather than displace, existing businesses.

It is also believed that a uniform 15 percent global tariff, announced by Trump, would benefit some Asia-Pacific economies that have faced much steeper tariff rates.

In advance of the third session of US-Iran nuclear negotiations, which is set for Thursday, geopolitical concerns are still present due to an increase in US forces in the Middle East.

The Australian dollar traded higher against its major currency peers in the Asian session, after the release of the January inflation figures which supported the RBA's hawkish stance.

Data from the Australian Bureau of Statistics showed that consumer prices in Australia were up a seasonally adjusted 3.8 percent on year in January, unchanged from the December reading following an upward revision from 3.6 percent.

On a seasonally adjusted monthly basis, inflation rose 0.5 percent.

Trimmed mean inflation was 3.4 percent, up from 3.3% in the 12 months to December 2025. The weighted mean was steady at 3.8 percent.

In other economic news, data from the Australian Bureau of Statistics showed that the value of construction work done in Australia was down a seasonally adjusted 0.1 percent on quarter in the fourth quarter of 2025, coming in at A$80.011 billion.

That was well shy of expectations for an increase of 1.2 percent following the 0.7 percent decline in the previous three months.

On a yearly basis, construction work was up 3.0 percent.

In the Asian trading today, the Australian dollar rose to a 35-year high of 110.84 against the yen and a 1-year high of 1.6688 against the euro, from yesterday's closing quotes of 110.03 and 1.16680, respectively. If the aussie extends its uptrend, it is likely to find resistance around 111.00 against the yen and 1.65 against the euro.

Against the U.S., the Canada and the New Zealand dollars, the aussie advanced to a 2-day high of 0.7110, a 5-year high of 0.9729 and nearly a 13-year high of 1.1892 from Tuesday's closing quotes of 0.7058, 0.9669 and 1.1832, respectively. The aussie may test resistance near 0.72 against the greenback, 0.98 against the loonie and 1.19 against the kiwi.

The NZ dollar rose to 2-day highs of 0.5981 against the U.S. dollar and 1.9710 against the euro, from yesterday's closing quotes of 0.5965 and 1.9734, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.61 against the greenback and 1.95 against the euro.

Against the yen, the kiwi edged up to 93.22 from Tuesday's closing value of 93.00. The kiwi may test resistance around the 94.00 region.

The Canadian dollar rose to a 2-day high of 1.3682 against the U.S. dollar, from Tuesday's closing value of 1.3700. If the loonie extends its uptrend, it is likely to find resistance around the 1.35 region.

Against the yen, the loonie advanced to 113.99 from yesterday's closing value of 113.79. The loonie may test resistance around the 114.00 region.

Looking ahead, Germany's revised GDP data for the fourth quarter and GfK consumer sentiment survey data for March are due to be released at 2:00 am ET in the pre-European session.

In the European session, Eurostat is set issue euro area final inflation data for January at 5:00 am ET. According to flash estimate, inflation eased to 1.7 percent in January from 1.9 percent in December.

In the New York session, U.S. MBA mortgage approvals data, Canada wholesale sales for January and U.S. EIA crude oil data are slated for release.

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