Monday, the Australian and the New Zealand dollars soared against their key counterparts as most Asian and European stocks gained, boosting demand for higher-yielding currencies.
Stocks in Asia and Europe advanced today as investor sentiment was bolstered after a positive closing in the Wall Street on Friday on optimism about sustaining economic recovery and China's decision not to hike interest rates but limit to enhancing banks' reserve requirements.
In Asia, Japan's Nikkei 225 index rose 0.8%, Hong Kong's Hang Seng climbed 0.7%, China's Shangai composite index soared 2.9%, New Zealand's NZX 50 index gained 0.6%, South Korea's Kospi advanced 0.5% and Taiwan's main index soared 0.2%. Australia's S&P 200 index and the All Ordinaries index was 0.2% higher.
In Europe, Germany's DAX climbed 0.4% thus far, France's CAC 40 index jumped 0.8% and U.K.'s FTSE 100 index soared 0.7%.
The New Zealand dollar advanced against the currency of U.S. in early European deals on Monday. The kiwi-greenback pair is currently worth 0.7512, up from Friday's close of 0.7484. If the kiwi gains further, it may likely target the 0.753 level.
During early European deals on Monday, the New Zealand dollar rose to a 5-day high of 63.32 against the Japanese yen. The next upside target level for the kiwi is seen at 63.5. At last week's close, the kiwi-yen pair was quoted at 62.83.
The New Zealand dollar climbed to 1.3145 against the Aussie in early European deals on Monday. On the upside, 1.313 is seen as the next target level for the kiwi. The aussie-kiwi pair was worth 1.3175 at Friday's close.
In early European deals on Monday, the New Zealand dollar strengthened to a 5-day high of 1.7588 against the euro. This may be compared to Friday's close of 1.7686. If the kiwi rises further, it may likely target the 1.744 level.
The Australian dollar gained ground against its US and Canadian counterparts in early European deals on Monday. As of now, the aussie is worth 0.9878 against the greenback and 0.9974 against the loonie, compared to Friday's close of 0.9856 and 0.9955, respectively. The next upside target level for the aussie is seen at 0.990 against the greenback and 0.999 against the loonie.
The Australian dollar has been extending its Asian session's gains against the Japanese yen in early European deals on Monday. The aussie-yen pair is currently trading at a 7-month high of 83.25. The next upside target level for the aussie is seen at 88.1. The pair closed last week's trading at 82.75.
The Australian dollar strengthened to a fresh record high of 1.3380 against the euro at 1:50 am ET Monday. Since then, the euro-aussie pair has been moving sideways and is currently worth 1.3390. This may be compared to last week's close of 1.3436.
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