Australian, NZ Dollars Appreciate On U.S. Stimulus Hopes
The Australian and NZ dollars climbed against their major
counterparts in the Asian session on Tuesday, on growing
expectations of a U.S. fiscal stimulus package before the U.S.
U.S. House Speaker Nancy Pelosi said on Bloomberg TV that
legislators are starting to commit the measure to paper, but
cautioned "Legislation is tough."
Senate Majority Leader Mitch McConnell signaled a willingness to
bring a bill passed by the House, and supported by President Trump,
to the floor at some point.
Trump signaled that he was willing to accept a large aid bill
despite opposition from the Republicans.
With only two weeks left until Election Day, Trump will go
head-to-head with Biden for their second presidential debate in
Nashville, Tennessee on Thursday.
Data from Westpac showed that Australia's leading index improved
in September suggesting that momentum continued to show a
significant improvement consistent with the economy moving out of
The six-month annualized growth rate in the Westpac Melbourne
Institute Leading Index, which indicates the likely pace of
economic activity relative to trend three to nine months into the
future, rose to -0.48 percent in September from -2.28 percent in
The aussie climbed to a 2-day high of 0.7083 against the
greenback, from a low of 0.7046 set at 5:00 pm ET. The aussie is
likely to challenge resistance around the 0.72 level.
The aussie touched a session's high of 74.61 against the yen,
reversing from a low of 74.28 seen at 5:00 pm ET. If the aussie
rises further, it may find resistance around the 76.00 level.
The Australian currency edged up to 1.6727 against the euro and
0.9278 against the loonie, from its previous low of 1.6782 and a
4-1/2-month low of 0.9247, respectively. The next possible
resistance for the aussie is seen around 1.62 against the euro and
0.94 against the loonie.
The kiwi rose to 2-day highs of 0.6621 against the greenback and
69.68 against the yen, after falling to 0.6573 and 69.32,
respectively in prior deals. The kiwi is likely to find resistance
around 0.68 against the greenback and 72.00 against the yen.
The kiwi recovered from an early low of 1.7982 against the euro,
rising to 1.7914. On the upside, immediate resistance is seen near
the 1.74 level.
Optimism over stimulus deal diminished the appeal of the
The greenback depreciated to 1-1/2-month lows of 0.9044 against
the franc and 1.3081 against the loonie, off its early highs of
0.9071 and 1.3129, respectively. The greenback is seen finding
support around 0.88 against the franc and 1.29 against the
Pulling back from its previous highs of 105.53 against the yen,
1.2935 against the pound and 1.1820 against the euro, the greenback
slipped to a 5-day low of 105.22, 2-day low of 1.3001 and more than
a 4-week low of 1.1863, respectively. On the downside, 104.00, 1.34
and 1.20 are possibly seen as its next support levels against the
yen, the pound and and the euro, respectively.
Looking ahead, Canada retail sales for August, consumer
inflation and new housing price index for September and U.S.
Federal Reserve's Beige book report will be featured in the New