The Australian and NZ dollars firmed against their major counterparts in the Asian session on Monday, as a decline in coronavirus infection rates and growing hopes of the U.S. stimulus package boosted optimism about the global economic recovery.

Asian stock markets are mostly higher following the record closing highs on Wall Street Friday. The markets in China, Taiwan and Hong Kong remain shut for the Lunar New Year holidays.

Former U.S. President Donald Trump was acquitted Saturday on charges of inciting an insurrection at the U.S. Capitol after a majority of Republicans declared him not guilty, in a sign of the powerful grip the 74-year-old Trump continues to exert on his part.

Japan is expected to begin coronavirus vaccinations this week.

Japan’s economy grew more than expected in the fourth quarter, easing concerns about the recovery from the coronavirus pandemic.

U.S. President Joe Biden’s push for the $1.9 trillion fiscal aid and a gradual slowdown in the infections raised hopes of a rapid economic recovery.

The aussie advanced to near a 5-week high of 0.9862 against the loonie and more than a 4-week high 0.7788 against the greenback, after falling to 0.9841 and 0.7759, respectively in early deals. If the aussie rises further, it may find resistance around 1.00 against the loonie and 0.82 against the greenback.

The aussie spiked up to more than 2-year highs of 81.84 against the yen and 1.5587 against the euro, off its early lows of 81.43 and 1.5623, respectively. The aussie is seen finding resistance around 84.00 against the yen and 1.54 against the euro.

Reversing from its early lows of 0.7203 against the greenback and 75.57 against the yen, the kiwi rose to a 4-day high of 0.7246 and a 6-day high of 76.14, respectively. The next possible resistance for the kiwi is seen around 0.74 against the greenback and 78.00 against the yen.

The NZ currency appreciated to 1.6750 against the euro and 1.0744 against the aussie, recovering from its early low of 1.6816 and near a 4-week low of 1.0772, respectively. On the upside, 1.66 and 1.06 are possibly seen as its next resistance levels against the euro and the aussie, respectively.

Looking ahead, Eurozone trade data and industrial production for December are due out in the European session.

Canada manufacturing sales for December are scheduled for release in the New York session.

The material has been provided by InstaForex Company – www.instaforex.com

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