The Australian and New Zealand dollars climbed against their major counterparts in the Asian session on Friday, as property developer China Evergrande made payments on dollar bonds to avert a default, easing some of the worries about a wide spread contagion.

Sentiment lifted up after China’s Securities Times reported that Evergrande has sent an $83.5 million interest payment to bondholders.

Oil prices eased amid indications of tightening of crude stocks in the U.S.

A rally in the yield on the ten-year treasury note paused as markets prepared for a potential reduction in stimulus measures as soon as next month.

Fed Chair Jerome Powell speaks later today in a panel discussion, with traders awaiting more clarity on the Fed’s policy plans.

The aussie climbed to 0.7500 against the greenback and 1.5521 against the euro, off its 3-day lows of 0.7454 and 1.5594, respectively. The aussie is seen finding resistance around 0.78 against the greenback and 1.52 against the euro.

The aussie rebounded to 85.54 against the yen, 0.9254 against the loonie and 1.0444 against the kiwi, from its early low of 84.89, session’s low of 0.9222 and more than a 3-week low of 1.0417, respectively. The currency is likely to locate resistance around 88.00 against the yen, 0.94 against the loonie and 1.07 against the kiwi.

The kiwi edged up to 0.7180 against the greenback, 81.91 against the yen and 1.6207 against the euro, after falling to 0.7151, 81.41 and 1.6254, respectively in early trades. If the kiwi rises further, 0.74, 83 and 1.60 are possibly seen as its next resistance levels against the greenback, the yen and the euro, respectively.

Looking ahead, Canada retail sales data for August is due in the European session.


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