Antipodean currencies such as the Australian and the New Zealand dollars strengthened against their major counterparts in the Asian session on Wednesday, as most Asian stock markets traded higher, though gains are modest following the mixed cues overnight from Wall Street. Investors are digesting U.S. President Donald Trump's abrupt dismissal of FBI director James Comey and the election of liberal leader Moon Jae-in as South Korea's new president.
Investors also digested the federal budget that includes a levy on the big banks.
In other economic news, data from the National Bureau of Statistics showed that the consumer prices in China were up 1.2 percent on year in April. That topped expectations for an increase of 1.1 percent and was up from 0.9 percent in March. On a monthly basis, inflation added 0.1 percent after slipping 0.3 percent in the previous month.
The bureau also said that producer prices climbed 6.4 percent on year, shy of forecasts for 6.7 percent and down from 7.6 percent a month earlier.
In the Asian trading, the Australian dollar rose to 1.4773 against the euro and 83.86 against the yen, from yesterday's closing quotes of 1.4807 and 83.71, respectively. The aussie may test resistance around 1.44 against the euro and 85.00 against the yen.
Against the U.S. and the Canadian dollars, the aussie advanced to 0.7369 and 1.0102 from yesterday's closing quotes of 0.7343 and 1.0072, respectively. If the aussie continues to rise, it is likely to find resistance around 0.76 against the greenback and 1.02 against the loonie.
The aussie edged up to 1.0675 against the NZ dollar, from an early near 2-1/2-month low of 1.0639. On the upside, 1.09 is seen as the next resistance level for the aussie.
The NZ dollar rose to 0.6911 against the U.S. dollar and 78.64 against the yen, from yesterday's closing quotes of 0.6894 and 78.59, respectively. If the kiwi continues trending up, it is likely to find resistance around 0.70 against the greenback and 80.00 against the yen.
Against the euro, the kiwi advanced to 1.5755 from yesterday's closing value of 1.5769. The kiwi is likely to find resistance around the 1.53 region.
Meanwhile, the safe-haven U.S. dollar fell against its major rivals amid rising risk appetite.
The U.S. dollar fell to a 2-day low of 1.2961 against the pound, from yesterday's closing value of 1.2935. The greenback may test support near the 1.30 region.
Against the euro, the yen and the Swiss franc, the greenback edged down to 1.0898, 113.62 and 1.0063 from yesterday's closing quotes of 1.0873, 114.00 and 1.0075, respectively. If the greenback extends its downtrend, it is likely to find support around 1.10 against the euro, 112.00 against the yen and 0.99 against the franc.
Looking ahead, European Central Bank President Mario Draghi is expected to speak about the impact of monetary policy at the Dutch House of Representatives, in Netherlands at 7:30 am ET.
In the New York session, U.S. import price index for April and U.S. crude oil inventories data are slated for release.
At 12:00 pm ET, Federal Reserve Bank of Boston President Eric Rosengren gives a luncheon speech in South Burlington, Vermont.
At 1:20 pm ET, Federal Reserve Bank of Minneapolis President Neel Kashkari will participate in a fireside chat on Too-Big-to-Fail with John Taft, former CEO of RBC Wealth Management in the U.S., in Minneapolis, Minnesota.
At 2:00 pm ET, U.S. Federal budget balance is set to be published.
For comments and feedback contact: editorial@rttnews.com
Business News
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.