logo
Plus   Neg
Share
Email

Australian Dollar Climbs On Stimulus Hopes

The Australian dollar was higher against its major counterparts in the Asian session on Monday amid rising risk appetite, as weak economic data from the U.S. and China raised hopes of further stimulus from global central banks.

Data released Friday showed weaker than expected U.S. jobs growth in the month of August, while data from China showed that the country's exports unexpectedly fell in the month.

Sentiment lifted up after Fed Chair Jerome Powell reiterated his soft-repeated pledge that the Federal Reserve will "act as appropriate" to sustain the U.S. economic expansion.

Data from the Australian Bureau of Statistics showed that Australia's mortgage approvals increased more-than-expected in July.

The number of owner occupier loans increased 4.2 percent, much larger than the expected growth of 1.5 percent.

The aussie strengthened to 0.6863 against the greenback, its strongest since August 1. The currency is likely to find resistance around the 0.71 level.

The aussie that closed Friday's trading at 73.19 against the yen appreciated to near a 6-week high of 73.35. On the upside, 76.00 is likely seen as the next resistance level for the aussie.

The aussie firmed to more than a 6-week high of 1.6067 against the euro from Friday's closing value of 1.6096. The next possible resistance for the aussie is seen around the 1.59 level.

The Australian currency bounced off to 0.9035 against the loonie, from a session's low of 0.9006 hit at 5:00 pm ET. If the aussie rises further, 0.92 is likely seen as its next resistance level.

The aussie recovered to 1.0675 against the kiwi, from a session's low of 1.0632 seen at 9:15 pm ET. Next likely resistance for the aussie is seen around the 1.08 level.

Looking ahead, Eurozone Sentix investor sentiment index for September, U.K. industrial production, manufacturing production, construction output, trade and GDP data, all for July, are due in the European session.

In the New York session, U.S. consumer credit for July is scheduled for release.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT