Australian, NZ Dollars Advance Amid Rising Risk Appetite

The Australian and NZ dollars firmed against their major opponents in the Asian session on Tuesday amid rising risk appetite, as a highly anticipated U.S.-Korea summit got underway in Singapore.

Analysts expect no major breakthroughs from the meeting even as both leaders face considerable pressure to pull off a success after an elevation in geopolitical tensions last year.

Secretary of State Mike Pompeo indicated on Monday the U.S. is prepared to offer North Korea "unique" security assurances in exchange for the complete, verifiable and irreversible denuclearization of the Korean peninsula.

Investors also await monetary policy announcements by three major central banks due this week.

The Federal Reserve is widely expected to raise interest rates by 25 basis points when it meets Tuesday and Wednesday.

The European Central Bank has already indicated that its upcoming meeting on Thursday will be used to discuss ending its bond purchasing program.

Survey data from the National Australia Bank showed that Australia's business conditions and confidence weakened notably in May.

The business confidence index fell to 6.0 in May from 11.0 in the previous month.

Figures from the Australian Bureau of Statistics showed that the total number of owner occupied housing commitments in Australia decreased for the fifth straight month in April.

On a seasonally adjusted basis, total number of owner occupied dwelling commitments dropped 1.4 percent month-over-month in April, slower than March's 2.3 percent fall.

The aussie advanced to a session's high of 0.7622 against the greenback, after having fallen to a 4-day low of 0.7584 at 9:00 pm ET. If the aussie rises further, it may find resistance around the 0.78 level.

The aussie hit a 5-day high of 84.16 against the yen from yesterday's closing value of 83.72. On the upside, 86.00 is possibly seen as the next resistance level for the aussie.

Data from the Ministry of Economy, Trade and Industry showed that Japan's tertiary activity index increased in April after falling in the previous month.

The tertiary activity index climbed 1.4 percent month-over-month in April, reversing a 0.3 percent decrease in March.

The aussie spiked up to a 5-day high of 1.5443 against the euro before holding steady in later deals. At yesterday's close, the pair was worth 1.5482.

The kiwi climbed to 0.7046 against the greenback and 1.0811 against the aussie, from its early weekly low of 0.6998 and a 4-day low of 1.0842, respectively. The kiwi is seen finding resistance around 0.72 against the greenback and 1.07 against the aussie.

The kiwi strengthened to a 6-day high of 1.6705 against the euro and near a 2-month high of 77.80 against the yen, reversing from its early lows of 1.6785 and 77.19, respectively. The next possible resistance for the kiwi is seen around 1.65 against the euro and 79.00 against the yen.

Looking ahead, U.K. jobless rate for the three months ended April and German ZEW economic sentiment for June are due in the European session.

In the New York session, U.S. CPI and monthly budget statement for May are scheduled for release.

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