empty
 
 

2021.05.2507:59:00UTC+00Australian, NZ Dollars Higher On Fed's Soothing Comments

The Australian and NZ dollars climbed against their major counterparts in the Asian session on Tuesday, as inflation worries receded following comments from Fed officials indicating continued policy support and considering the pick up in inflation to be transitory.

Most Asian stock markets rose, following the broadly positive cues overnight from Wall Street, as Fed officials talked down inflation risks and described the recent demand-supply disruptions as transitory.

Fed officials Lael Brainard, Raphael Bostic and James Bullard suggested that supply bottlenecks could lead to higher prices in coming months but the spike should be temporary.

Treasury yields were stable following a retreat overnight on the Fed comments.

Data from Statistics New Zealand showed that New Zealand retail sales climbed a seasonally adjusted 2.5 percent on quarter in the first quarter of 2021 - following the upwardly revised 2.6 percent contraction in the three months prior (originally -2.7 percent).

On a yearly basis, sales rose 6.8 percent - accelerating from 4.8 percent in the three months prior.

The aussie climbed to 4-day highs of 0.7776 against the greenback and 84.47 against the yen, after falling to 0.7746 and 84.25, respectively in early deals. The next possible resistance for the aussie is seen around 0.80 against the greenback and 86.00 against the yen.

Reversing from its early lows of 1.5780 against the euro and 0.9332 against the loonie, the aussie gained to 4-day highs of 1.5740 and 0.9359, respectively. If the aussie rises further, it may find resistance around 1.54 against the euro and 0.96 against the loonie.

The aussie rebounded from an early 8-day low of 1.0732 against the kiwi and edged up to 1.0751. The aussie is likely to challenge resistance around the 1.09 level.

The kiwi appreciated to a 4-day high of 1.6905 against the euro and 6-day highs of 0.7240 against the greenback and 78.69 against the yen, off its prior lows of 1.6952, 0.7203 and 78.32, respectively. The kiwi is poised to find resistance around 1.66 against the euro, 0.74 against the greenback and 80.00 against the yen.

Looking ahead, German Ifo business sentiment index for May is due in the European session.

U.S. consumer confidence index for May, new home sales for April and FHFA's house price index and S&P/Case-Shiller home price index for March will be out in the New York session.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback