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Australian Dollar Climbs Amid Rising Risk Appetite

The Australian dollar advanced against its major counterparts in the late Asian session on Wednesday amid rising risk appetite, as most Asian markets rose, tracking the positive cues overnight from Wall Street and higher commodity prices.

Investors await president-elect Donald Trump's speech due later in the day, when he may offer specifics about his plans for the U.S. economy on issues such as tax cuts, infrastructure spending and trade policy.

Oil prices rebounded amid reports that Saudi Arabia has started to comply with slight supply cuts from contracted volumes in February, including to India and Malaysia.

Base metal prices held steady after sharp overnight gains as Chinese producer price inflation data released on Tuesday reinforced views that the world's second-largest economy is on steadier footing heading into the new year.

The aussie was trading in a positive territory against its major rivals on Tuesday, with the exception of the yen. The aussie rose 0.1 percent against the greenback, 0.4 percent against the euro, 0.6 percent against the kiwi for the day.

The aussie climbed to a 2-day high of 85.75 against the yen and a 2-week high of 0.9783 against the loonie, compared to yesterday's closing values of 85.28 and 0.9748, respectively. If the aussie extends rise, it may find resistance around 88.00 against the yen and 0.99 against the loonie.

The aussie that ended yesterday's trading at 0.7366 against the greenback and 1.4319 against the euro strengthened to near 4-week highs of 0.7396 and 1.4278, respectively. On the upside, the aussie may challenge resistance around 0.75 against the greenback and 1.41 against the euro.

The aussie firmed to a 1-1/2-month high of 1.0564 against the kiwi early in the session and held steady in subsequent part of the deals. The pair was valued at 1.0539 when it finished Tuesday's trading.

Looking ahead, U.K. trade data, industrial production and construction output for November are due in the European session.

The Bank of England governor Mark Carney will testify before the Parliament's Treasury Select Committee in London at 9:15 am ET.

The Energy Information Administration releases official crude inventory data in the New York session.

New York Fed President William Dudley speaks about banking culture from a regulatory perspective at the Banking Symposium in New York at 1:20 am ET.

by RTT Staff Writer

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