RTTN:Australian And New Zealand Dollars Rise On Greek Optimism
(RTTNews) - The Australian and New Zealand dollars strengthened against other major currencies on Wednesday amid optimism that Greece will reach a debt-restructuring agreement with bondholders that will help the cash-strapped nation avoid a disorderly default.
After missing two deadlines to reach a political consensus on the terms and conditions of the new 130-billion bailout deal, Greek political leaders are due to meet again later in the day for finalizing a document detailing the largely unpopular austerity measures and other terms included in the bailout package.
In addition to political negotiations over the austerity measures, Prime Minister Lucas Papademos is also holding last-minute negotiations with the troika of creditors, namely the EU, ECB and IMF. The Australian dollar that closed yesterday's trading at 1.0751 against the Canadian dollar rose to a fresh multi-year high of 1.0784. The next upside target level for the aussie-loonie pair is seen at 1.10.
The Australian dollar climbed to fresh multi-month highs of 1.0846 against the US dollar and 83.64 against the yen, compared to yesterday's close of 1.0807 and 82.99, respectively. If the aussie gains further, it may likely target 1.090 against the greenback and 84.0 against the yen.
The Australian dollar is now worth 1.2250 against the euro, compared to an early Asian session's 5-day low of 1.2293. If the aussie advances further, 1.220 is seen as the next target level. At yesterday's close, the euro-aussie pair was quoted at 1.2276.
The Australian dollar also recovered from an Asian session low of 1.2909 against the NZ dollar and the pair is currently worth 1.2933. The near term resistance level for the aussie-kiwi pair is seen at 1.297.
The New Zealand dollar also advanced, hitting new multi-month highs of 0.8391 against the US dollar and 64.71 against the yen. The next upside target level for the kiwi is seen at 0.858 against the greenback and 66.0 against the yen. The kiwi-greenback and the kiwi-yen pairs were worth 0.8360 and 64.20, respectively at Tuesday's close.
Against the euro, the NZ dollar rebounded from an early Asian session's 8-day low of 1.5899. As of now, the kiwi is worth 1.5828 per euro with 1.580 seen as the next upside target level. The euro-kiwi pair closed yesterday's trading at 1.5870.
Germany's trade surplus decreased more than expected by economists in December as exports dropped, data from the Federal Statistical Office showed today.
The trade surplus declined to EUR 12.9 billion in December from EUR 15.9 in November. Economists had forecast a decline to EUR 13.7 billion.
(RTTNews) - Looking ahead, Canada's housing starts for January is expected at 8:15 am ET.
There are no major economic reports due from the U.S. today.
