Commodity currencies such as the Australian, the New Zealand, and the Canadian dollars strengthened against their major counterparts in the Asian session on Friday. This was due to Asian stock markets trading mostly higher in thin trade, as some of the markets in the region are closed on Friday for holidays.
Investor sentiment was bolstered by the positive cues overnight from Wall Street and data showing that China's manufacturing sector continued to expand in August.
Nevertheless, investors are cautious as they await the release of U.S. jobs data for the month of August later in the day.
The latest survey from Caixin revealed that the manufacturing sector in China continued to expand in August, and at a faster rate, with a manufacturing PMI score of 51.6. That's up from 51.1, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
Meanwhile, the crude oil prices surged, taking back recent losses after the U.S. Energy Department's release of 1 million barrels a day from the Strategic Petroleum Reserve in the wake of Hurricane Harvey.
On the economic front, the latest survey from the Australian Industry Group revealed that the manufacturing sector in Australia expanded for the eleventh straight month in August, with a Performance of Manufacturing Index score of 59.8.
That's up from 56.0 in July, and it represents the highest index reading since 2002.
Data from Statistics New Zealand showed that New Zealand's terms of trade climbed 1.5 percent on quarter in the second three months of 2017. That missed forecasts for an increase of 3.0 percent following the downwardly revised 3.9 percent gain in the second quarter.
Export prices for goods rose 2.4 percent, while import prices for goods increased 0.9 percent.
In the Asian trading, The Australian dollar rose to a 6-day high of 1.4963 against the euro, from yesterday's closing of 1.4984. The aussie may test resistance near the 1.47 region.
Against the U.S. dollar and the yen, the aussie advanced to 2-day highs of 0.7956 and 87.58 from yesterday's closing quotes of 0.7946 and 87.38, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.80 against the greenback and 89.00 against the yen.
The aussie edged up to 1.1079 against the NZ dollar, from yesterday's closing value of 1.1070. On the upside, 1.11 is seen as the next resistance level for the aussie.
The NZ dollar rose to 0.7189 against the U.S. dollar and 79.12 against the yen, from yesterday'S closing quotes of 0.7176 and 78.91, respectively. If the kiwi extends is uptrend, it is likely to find resistance around 0.74 against the greenback and 81.00 against the yen.
Against the euro, the kiwi advanced to 1.6560 from yesterday's closing value of 1.6591. The kiwi is likely to find resistance around the 1.62 region.
The Canadian dollar rose to a 1-month high of 88.41 against the yen and a 1-week high of 1.4818 against the euro, from yesterday's closing value of 88.09 and 1.4863, respectively. If the loonie extends its uptrend, it may find resistance around 90.00 against the yen, and 1.46 against the euro.
Against the Australian and the U.S. dollars, the loonie advanced to a 4-day high of 0.9887 and a 3-day high of 1.2450 from yesterday's closing quotes of 0.9917 and 1.2481, respectively. The loonie could find resistance around 0.98 against the aussie and 1.23 against the greenback.
In the scheduled events today, PMI reports from major European economies for August and Swiss retail sales data for July are due to be released later in the day.
In the New York session, Canada and U.S. manufacturing PMI data for August, U.S. jobs data for August, construction spending data for July, U.S. University of Michigan's final consumer sentiment index for August and U.S. Baker Hughes rig count data are slated for release.
