The Australian dollar climbed against its major counterparts in the European session on Wednesday amid risk appetite, as inflation fears reduced and investors cheered strong earnings updates from the likes of SAP and LVMH Moet Hennessey.
Benchmark U.S. Treasury yields extended their decline to mark a fresh three-week low after data showed U.S. inflation was not rising too fast as had been feared.
Oil prices rose on signs of inventory drawdown and after OPEC raised its forecast for growth in world oil demand this year.
Earnings will be a focus, with JPMorgan Chase & Co. and Goldman Sachs Group Inc among the companies reporting their results later today.
Fed Chair Jerome Powell is scheduled to speak at the Economic Club of Washington later in the day.
The latest survey from Wetspac Bank and the Melbourne Institute showed that Australia’s consumer confidence spiked in April – jumping 6.2 percent on month to a reading of 118.8.
That’s the highest reading for the index since August 2010.
The aussie rose to 0.7696 against the greenback, its highest level since March 23. Next immediate resistance for the aussie is likely seen around the 0.78 level.
The aussie appreciated to a 1-week high of 83.86 against the yen and a 6-day high of 1.5543 against the euro, off its prior lows of 83.11 and 1.5656, respectively. The aussie is seen locating resistance around 86.00 against the yen and 1.49 against the euro.
The aussie touched a fresh 3-week high of 0.9656 against the loonie, gaining from a low of 0.9568 seen at 5:00 pm ET. The aussie may target resistance around the 0.98 level.
In contrast, the aussie held near a 2-week low of 1.0802 versus the kiwi, compared to Tuesday’s close of 1.0822. The next likely support for the aussie is seen around the 1.06 level.
New Zealand’s central bank left its monetary policy unchanged and agreed to cut its interest rates further if required as the economic outlook remains highly uncertain.
The Monetary Policy Committee of the Reserve Bank of New Zealand decided to keep the Official Cash Rate at 0.25 percent and the Large Scale Asset Purchase at NZ$100 billion. The Funding for Lending programmes were also kept unchanged.
Looking ahead, U.S. import and export prices for March, as well as Fed Beige book report are slated for release in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com
🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.
As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.