The Australian and NZ dollars climbed against their major counterparts in the Asian session on Monday, amid rising risk appetite on hopes for a faster economic recovery in the wake of positive U.S. data and in anticipation of encouraging earnings reports this week.
Most Asian stock markets rose following broadly positive cues from Wall Street on Friday, as strong data helped shrug off concerns about proposal for raising the capital gains tax rate in the U.S.
Investors await key risk events, including central bank meetings from Japan and the U.S.
Powell is expected to reaffirm that the Fed is in no rush to withdraw stimulus even as the U.S. economy gathers momentum.
The Bank of Japan announces its latest rate decision on Tuesday, with economists expecting it to stand pat following its policy framework tweaks last month.
Earnings reports are in focus, with Tesla, Starbucks, Microsoft and Amazon set to report their quarterly earnings results this week.
The aussie climbed to a 6-day high of 0.7781 against the greenback, 4-day highs of 83.83 against the yen and 0.9694 against the loonie, off its early lows of 0.7739, 83.50 and 0.9654, respectively. The aussie is seen finding resistance around 0.81 against the greenback, 87.5 against the yen and 0.98 against the loonie.
The aussie reversed from an early near 2-week low of 1.5623 against the euro, rising to 1.5553. Next key resistance for the aussie is seen around the 1.51 level.
The aussie touched a session’s high of 1.0784 against the kiwi, after falling to 1.0755 in early deals. The aussie is poised to find resistance around the 1.09 level.
The kiwi rose to a 6-day high of 0.7222 against the greenback and a 4-day high of 77.78 against the yen, following its prior lows of 0.7188 and 77.54, respectively. The kiwi is likely to find resistance around 0.74 against the greenback and 79.5 against the yen.
The kiwi approached 1.6769 against the euro, rising from a low of 1.6818 seen at 5:45 pm ET. On the upside, 1.66 is possibly seen as its next resistance level.
Looking ahead, German Ifo business sentiment index for April is due in the European session.
In the New York session, U.S. durable goods orders for March will be featured.
The material has been provided by InstaForex Company – www.instaforex.com