The Australia and the New Zealand dollars strengthened against their major currencies in the Asian session on Thursday, after data showed that Chinese consumer prices rose more-than-expected in June. Australia's better-than-expected employment report for June also boosted sentiment.
Data from the National Bureau of Statistics of China showed that consumer prices in China were up 1.4 percent on year in June. That exceeded forecasts for 1.3 percent and was up from 1.2 percent in May. On a monthly basis, consumer prices were flat.
However, producer prices contracted 4.8 percent on year in June compared to forecasts for a fall of 4.6 percent, which would have been unchanged from May.
Data from the Australian Bureau of Statistics showed that the unemployment rate in Australia came in at a seasonally adjusted 6.0 percent in June. That was lower than estimates for 6.1 percent, although it was up from the downwardly revised 5.9 percent in May.
The Australian economy added 7,300 jobs in June, topping forecasts for a flat reading following the downwardly revised increase of 40,000 jobs in the previous month.
In Greece, the government formally requested a new three-year bailout from the European Stability Mechanism and promised to implement some austerity measures as early as next week. Eurozone leaders have set a Sunday deadline for Greece to submit a new plan for financial assistance.
Wednesday, the Australian dollar fell, as resource stocks were hit by the decline in commodity prices on worries about the volatility in China's stock market. Also, concerns over Greece continued to weigh on investor sentiment. The Australian dollar fell 0.55 percent against the U.S. dollar, 1.28 percent against the yen and 0.91 percent against the euro.
Meanwhile, the NZ dollar showed mixed trading against its major rivals on Wednesday. While the kiwi held steady against the U.S. dollar and the euro, it fell against the yen.
In the Asian trading today, the Australian dollar rose to a 3-day high of 0.9502 against the Canadian dollar and a 2-day high of 0.7474 against the U.S. dollar, from yesterday's closing quotes of 0.9425 and 0.7409, respectively. The aussie may test resistance near 0.96 against the loonie and 0.77 against the greenback.
Moving away from an early near 1-1/2-year low of 89.15 against the yen, nearly a 7-month low of low of 1.4968 against the euro and a 4-week low of 1.1022 against the NZ dollar, the aussie edged up to 90.63, 1.4815 and 1.1075, respectively. At yesterday's close, the aussie was trading at 90.12 against the yen, 1.4912 against the euro and 1.1087 against the kiwi. If the aussie extends its uptrend, it is likely to find resistance around 93.50 against the yen, 1.42 against the euro and 1.15 against the kiwi.
The NZ dollar also rose to 8-day highs of 0.6753 against the U.S. dollar and 1.6395 against the euro in the Asian trading today, from yesterday's closing quotes of 0.6680 and 1.6532, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.70 against the greenback and 1.59 against the euro.
Against the yen, the kiwi advanced to a 2-day high of 81.84 from yesterday's closing value of 81.26. The kiwi is likely to find resistance around the 84.80 area.
Looking ahead, the German trade balance for May is due to be released at 2:00 am ET.
At 5:45 am ET, Federal Reserve Bank of Minneapolis President Narayana Kocherlakota will deliver a speech on a panel discussing "Central Banks and Fiscal Authorities" in the Deutsche Bundesbank "Turning points in history: How crises have changed the tasks and practice of central banks" conference, in Frankfurt.
The Bank of England will announce its interest rate decision at 7:00 am ET. Economists expect the bank to retain interest rates unchanged at 0.50 percent and asset purchase target at 375 billion pounds.
In the New York session, Canada housing starts for June and housing price index for May and U.S. weekly jobless claims for the week ended July 4, are slated for release.
At 10:15 am ET, Federal Reserve Board Governor Lael Brainard is expected to speak on regulatory reform and implementation five years after the passage of the Dodd-Frank Act, before the Bipartisan Policy Center Financial Regulatory Reform Initiative and Managed Funds Association, in Washington D.C.
At 1:00 pm ET, Federal Reserve Bank of Kansas City President Esther George will speak on monetary policy and the economic outlook before the Stillwater Economic Forum hosted by the Kansas City Fed's Oklahoma branch, in Stillwater, United States.
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