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Australian, NZ Dollars Strengthen Amid US Stimulus Deal

The Australian and New Zealand dollars advanced against their major counterparts in the Asian session on Wednesday amid risk appetite, as the U.S. Senate approved a nearly $2tn stimulus package to help rescue the American economy ravaged by the coronavirus pandemic.

The bill now goes to the House, where Democrats have introduced their own proposal.

The relief package include provisions to help impacted American workers and families as well as small businesses and major industries amid intensifying coronavirus crisis.

Chinese shares touched a one-week high as mainland China reported a drop in new imported coronavirus cases and no locally transmitted infections were reported.

Data from Statistics New Zealand showed that New Zealand recorded a merchandise trade surplus of NZ$594 million in February.

That exceeded expectations for a surplus of NZ$550 million following the NZ$340 million deficit in January.

The kiwi advanced to a 6-day high of 0.5893 versus the greenback, 9-day high of 65.56 versus the yen and a 5-day high of 1.8351 versus the euro, from its early lows of 0.5793, 64.35 and 1.8612, respectively. The kiwi is seen finding resistance around 0.64 versus the greenback, 68.00 versus the yen and 1.78 versus the euro.

The aussie appreciated to an 8-day high of 0.6046 versus the greenback, 9-day highs of 67.24 versus the yen and 1.7893 versus the euro, off its early lows of 0.5935, 65.93 and 1.8168, respectively. The aussie is likely to find resistance around 0.70 versus the greenback, 74.00 versus the yen and 1.61 versus the euro.

The aussie spiked up to a 9-day high of 0.8668 versus the loonie, from a low of 0.8577 seen at 10:45 pm ET. Next key resistance for the aussie is seen around the 0.90 mark.

The aussie was trading higher at 1.0261 against the kiwi, not far from a 9-day peak of 1.0272 set at 6:05 pm ET. If the aussie rises further, 1.06 is likely seen as its next resistance level.

Looking ahead, German Ifo business sentiment index for March is due in the European session.

In the New York session, U.S. durable goods orders for February and FHFA's house price index for January will be featured.

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