Australian, NZ Dollars Higher After China Data
The Australian and NZ dollars appreciated against their major
counterparts in the European session on Wednesday, as China's
consumer price index matched forecasts in August.
Data from the National Bureau of Statistics showed that the CPI
rose 0.4 percent month-on-month in August versus 0.6 percent gain
in July. The rate came in line with expectations.
On an annual basis, the CPI grew 2.4 percent in August, compared
to a 2.7 percent increase in July.
Producer prices decreased at a pace of 2 percent on a yearly
basis in August, as expected, following a 2.4 percent drop in the
European stocks rose despite fears about AstraZeneca's halt in
its vaccine trials.
The company said it is investigating whether a patient's
reported side effect is related to the vaccine, known as
Survey data from Westpac showed that Australia's consumer
sentiment strengthened in September even though the economy plunged
into its first recession since 1992.
The Westpac-Melbourne Institute Index of Consumer Sentiment
climbed 18 percent to 93.8 in September from 79.5 in August.
The aussie advanced to 0.7242 against the greenback, 76.86
versus the yen and 1.6239 against the euro, off its early a 2-week
low of 0.7192, fresh 2-week low of 76.11 and near a 2-week low of
1.6354, respectively. The next possible resistance for the aussie
is seen around 0.75 against the greenback, 78.00 versus the yen and
1.58 against the euro. The aussie touched a 6-day high of 0.9576
versus the loonie, up from a low of 0.9531 hit at 5:45 pm ET. The
aussie is seen finding resistance around the 0.98 level.
The kiwi gained to 70.47 versus the yen, 0.6642 versus the
greenback and 1.7704 against the euro, after falling to a 2-week
low of 69.87 and near 2-week lows of 0.6601 and 1.7816,
respectively in prior deals. The kiwi is likely to find resistance
around 72.00 versus the yen, 0.68 versus the greenback and 1.74
against the euro.
The kiwi recovered to 1.0890 against the aussie, from a low of
1.0914 set at 5:15 am ET. If the kiwi continues its rise, 1.06 is
possibly seen as its next resistance level.
Looking ahead, Canada housing starts data for August is set for
release at 8:15 am ET.
At 10:00 am ET, the Bank of Canada announces decision on
interest rates. Economists forecast the benchmark rate to remain at