Australian, NZ Dollars Higher On Stimulus Hopes

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The Australian and NZ dollars strengthened against their major counterparts in the Asian session on Friday, as most Asian markets rose following the positive cues overnight from Wall Street and on optimism about a U.S. stimulus package as House Democrats reportedly plan to unveil a new $2.4 trillion relief bill in the coming days.

House Speaker Nancy Pelosi reiterated that she is ready to negotiate with the White House to find an agreement.

Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin said on Thursday that the new economic relief package could help households and businesses.

“If Democrats are willing to sit down, I’m willing to sit down any time for bipartisan legislation. Let’s pass something quickly,” Mnuchin said.

News that Australia’s three major states – New South Wales, Queensland and Victoria – plan to further ease coronavirus restrictions also boosted sentiment.

The aussie climbed to a 2-day high of 0.7086 against the greenback, after falling to 0.7043 at 5:00 pm ET. The next possible resistance for the aussie is seen around the 0.72 region.

The aussie recovered from near a 3-month low 0.9395 against the loonie, with the pair trading at 0.9455. The aussie is likely to challenge resistance around the 0.96 level, should it rises further.

The aussie advanced to 74.63 against the yen and 1.6478 against the euro, off its early lows of 74.23 and 1.6564, respectively. If the aussie rises further, it may find resistance around 76.00 against the yen and 1.62 against the euro.

The NZ currency appreciated to 2-day highs of 0.6592 against the greenback, 69.42 against the yen and 1.7709 against the euro, from its early lows of 0.6540, 68.94 and 1.7830, respectively. The kiwi is seen finding resistance around 0.68 against the greenback, 72.00 against the yen and 1.73 against the euro,

The kiwi hit 1.0738 against the aussie, its strongest level since August 3. The kiwi is poised to find resistance around the 1.06 level.

Looking ahead, U.S. durable goods orders for August will be out in the New York session.


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