The Australian and New Zealand dollars strengthened against their major counterparts in the early Asian session on Tuesday as Asian stocks rose on hopes that China will take more measures to prevent a rapid economic slowdown.
Also, investors became optimistic ahead of European Union summit scheduled at Brussels tomorrow. The meeting will focus on steps to boost economic growth to solve the continent's debt crisis.
The aussie climbed to 5-day highs of 0.9923 against the U.S. dollar and 78.82 against the yen, compared to Monday's close of 0.9917 and 78.66, respectively. The next upside target level for the aussie is seen at 0.995 against the greenback and 79.5 against the yen.
Against the Canadian dollar and the euro, the aussie that closed Monday's deals at 1.0093 and 1.2932 strengthened to a 5-day high of 1.0097 and a 4-day high of 1.2914,respectively. If the aussie rises further, it may target 1.015 against the loonie and 1.285 against the euro.
The New Zealand dollar also advanced, hitting 5-day highs of 0.7676 against the U.S. dollar and 60.98 against the yen. On the upside, the kiwi may target 0.77 against the greenback and 61.5 against the yen. At Monday's close, the kiwi traded at 0.7654 against the greenback and 60.71 against the yen.
Against the euro and and the Australian currency, the kiwi spiked up to 4-day highs of 1.6695 and 1.2928 with 1.66 and 1.29, respectively seen as the next upside target levels. The kiwi ended yesterday's deals at 1.6758 against the euro and 1.2962 against the aussie.
In the European session, U.K. CPI, retail price index and public finances data for April and DCLG house price index for March are due.
The U.S. existing home sales report for April is scheduled for release in the New York morning session.
by RTT Staff Writer
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