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Commodity Currencies Rise Amid Oil Prices Surge

Commodity currencies such as the Australian, the New Zealand and the Canadian dollars strengthened against their major counterparts in the Asian session on Wednesday amid crude oil prices rise, fueled by supply disruptions from Nigeria.

Crude oil for July delivery are currently up $0.13 to $50.49 a barrel.

Militants have been attacking oil fields in the central African nation, resulting in numerous shut downs.

In other economic news, data from Statistics New Zealand showed that the value of manufacturing activity in New Zealand slipped a seasonally adjusted 2.6 percent on quarter in the first three months of 2016. That follows the 1.9 percent decline in the previous three months.

Data from the General Administration of Customs showed that China's exports decreased at a faster-than-expected pace in May, while imports fell less-than-expected.

Exports slid 4.1 percent year-over-year in May, slightly above economists' expectations for a 4.0 percent decline. Imports dropped 0.4 percent in May from a year ago, much slower than the 6.7 percent fall expected by economists.

The visible trade surplus of the country came in at $49.98 billion in May. The expected surplus was $55.85 billion.

Tuesday, the Australian, the New Zealand and the Canadian dollars roes against their major counterparts.

The Australian dollar rose 1.12 percent against the U.S. dollar, 1.20 percent against the yen and 1.22 percent against the euro. The NZ dollar rose 0.47 percent against the U.S. dollar, 0.64 percent against the yen and 0.79 percent against the euro. The Canadian dollar rose 0.63 percent against the U.S. dollar, 0.45 percent against the yen and 0.61 percent against the euro.

In the Asian trading, the Australian dollar rose to 1.5239 against the euro and 79.94 against the yen, from early lows of 1.5300 and 79.37, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.48 against the euro and 83.00 against the yen.

Against the U.S., the New Zealand and the Canadian dollars, the aussie edged up to 0.7459, 1.0681 and 0.9497 from early lows of 0.7430, 1.0655 and 0.9470, respectively. The aussie may test resistance near 0.78 against the greenback, 1.09 against the kiwi and 0.98 against the loonie.

The NZ dollar rose to more than a 5-week high of 0.6988 against the U.S. dollar and a 5-day high of 1.6256 against the euro, from yesterday's closing quotes of 0.6977 and 1.6263, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.71 against the greenback and 1.60 against the euro.

Against the yen, the kiwi edged up to 74.93 from yesterday's closing value of 74.89. On the upside, 77.00 is seen as the next resistance level for the kiwi.

The Canadian dollar rose to a 5-week high of 1.2727 against the U.S. dollar, from an early low of 1.2761. The loonie is likely to find resistance around the 1.24 area.

Against the euro and the yen, the loonie edged up to 1.4467 and 84.22 from early lows of 1.4494 and 83.75, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.41 against the euro and 88.00 against the yen.

Meanwhile, the safe-haven fell against its major rivals.

In other economic news, the Cabinet Office said that Japan's gross domestic product was revised up to 0.5 percent on quarter in the first three months of 2016. That was in line with expectations following last month's preliminary reading for a 0.4 percent gain. That followed the 0.4 percent contraction in the previous three months.

The Ministry of Finance said that Japan had a current account surplus of 1.878 trillion yen in April. That was shy of expectations for 2.308 trillion yen following the 2.980 trillion yen surplus in March.

The trade balance came in at 697.1 billion yen, missing forecasts for 919.0 billion yen following the 927.2 billion yen in the previous month.

The Bank of Japan said that overall bank lending in Japan was up 2.2 percent on year in May, coming in at 497.216 trillion yen. That was in line with expectations and unchanged from the previous month.

The yen fell to 156.12 against the pound and 111.14 against the Swiss franc, from early highs of 155.16 and 110.62, respectively. If the yen extends its downtrend, it is likely to find support around 164.00 against the pound and 114.00 against the franc.

Against the euro and the U.S. dollar, the yen edged down to 121.89 and 107.28 from early 2-day highs of 121.33 and 106.72, respectively. The yen may test support near 125.00 against the euro and 113.00 against the greenback.

Looking ahead, Swiss CPI data for May and U.K. industrial production for April are due to be released later in the day.

In the New York session, Canada housing starts for May and building permits for April, U.K. NIESR GDP estimate for May and U.S. crude oil inventories data are slated for release.

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