RTTN:Australian And NZ Dollars Advance On Increasing Risk-sentiments
(RTTNews) - The Australian and New Zealand dollars strengthened against their major rivals in early European deals on Monday as traders seek riskier currencies on hopes that Europe will find a solution to resolve its sovereign debt crisis.
Policymakers from the G-20 group of nations pressed European leaders on Saturday to soon resolve their debt crisis and come up with a concrete plan when they meet on October 23 for an Euro Area Summit in Brussels, where France and Germany are to articulate on ways to resuscitate an ailing banking sector.
European leaders will agree on "key principles" of a second bailout package for the Greek government at the Brussels meeting and efforts are under way to make the most out of the EPSF's resources, European Union Economic and Monetary Affairs Commissioner Olli Rehn said without going into details.
The market is expecting the said plan would include recapitalization of European banks, write-downs of Greek debt and further expansion of the European Financial Stability Fund or EFSF.
The Australian dollar touched above the 1.0350 level against the US dollar for the first time since September 16, rising as much as 1.3057 before leveling off around 3:35 am ET. The aussie-greenback pair is presently worth 1.3047 with 1.04 seen as the next likely upside target level.
Against the euro, the Australian dollar advanced to nearly a 4-week high of 1.3413 around 3:20 am ET and the pair reversed direction thereafter. The euro-aussie pair is presently worth 1.3450 with 1.3550 seen as the next likely resistance level and 1.34 as the probable support.
The Australian dollar advanced to a 5-week high of 80.16 against the Japanese yen around 4:00 am ET, compared to 79.90 hit late New York Friday. The aussie-yen pair is presently quoted at 80.08 with 81.0 seen as the next likely resistance level.
The New Zealand dollar also advanced to nearly a 4-week high of 62.41 against the Japanese yen and 0.8062 against the US dollar around 3:50 am ET. The NZ dollar that settled Friday's deals at 62.22 against the yen and 0.8053 against the greenback is presently trading at 62.31 and 0.8048, respectively. On the upside, the kiwi may find target levels at 63.10 against the yen and 0.8120 against the buck.
Japan's government downgraded its economic assessment for the first time in six months, citing slowing global growth. The global weakness is dampening exports and production, the cabinet office said in its monthly report today.
In economic news, Japanese industrial production grew by revised 0.6 percent month-on-month in August, final data from the Ministry of Economy, Trade and Industry showed. The growth figure was downgraded from the preliminary estimate of 0.8 percent. Annually, it advanced 0.4 percent.
(RTTNews) - The New Zealand dollar was trading in range-bound patterns against the euro and Australian dollar, moving between 1.7312-1.7234 and 1.2880-1.2835, respectively. The kiwi is presently trading at 1.7287 against the common currency and 1.2862 versus its Australian counterpart.
Traders are now likely to focus in the North American session, in which the U.S. empire manufacturing index for October and the industrial production for September are slated for release.
