The Australian dollar edged higher against its major rivals on Friday morning in Asia as modest gains in most Asia-pacific stocks fueled investor’s risk appetite. The aussie advanced to more than a 1-month high against the US dollar and a 3-week high against the Canadian dollar.
The Australian stock market is trading modestly higher today with investors indulging in some selective buying on the back of a positive close on Wall Street overnight. Financial, materials and healthcare stocks are among the notable gainers.
The benchmark S&P/ASX 200 index, which surged to 4,556.3 in early trades, is currently up 16.7 points or 0.4% at 4,544. The broader All Ordinaries index is up 17 points or 0.4% at 4,564.
Among other markets in the Asia-Pacific region, Malaysia, Japan, New Zealand, Singapore and Taiwan are trading modestly higher, while South Korea and Shanghai are trading flat.
The Australian dollar rose to more than a 1-month high of 0.8694 against the US dollar by 10:05 pm ET and the next likely resistance level for the pair is seen at 0.8780. The aussie-greenback pair is presently worth near Thursday’s North American session closing quote of 0.8689.
The aussie recouped some of its initial losses against the Japanese yen in the session, rising to as high as 79.05 before holding steady around 10:05 pm ET. The aussie-yen pair that was worth 79.09 at Thursday’s North American close is presently quoted at 79.0.
Members of the Bank of Japan’s monetary policy board reiterated that the bank will maintain extremely easy monetary policy for the time being, minutes from the bank’s May 20-21 meeting revealed today.
At the meeting, the board unanimously held the uncollateralized overnight call rate at the record low of 0.10 percent – where they have remained since December 2008. The bank also announced that it will offer one-year loans to commercial banks to encourage lending and pull the country out of deflation.
Additionally, the board members emphasized that the new lending policy is temporary, the minutes showed, and it must not affect the bank’s interest rate policy.
The Australian dollar moved slightly off after hitting a 1-week low of 1.2291 against the New Zealand dollar in early Asian trading on Friday. The aussie-kiwi pair is presently quoted at 1.2348, up from 1.2342 hit late New York Thursday.
The Australian dollar extended its previous session’s rally against the Canadian dollar on Friday morning in Asia. The aussie advanced to a 3-week high of 0.8938 against the loonie before leveling off around 9:20 pm ET. The aussie-loonie pair, which closed yesterday’s deals at 0.8934, is presently quoted at 0.8931.
The Australian dollar reversed its course after edging down to 1.4308 against the euro in early Asian deals on Friday. The euro-aussie pair is presently worth near Thursday’s New York session closing value of 1.4267.
Looking ahead, German producer prices for May, Italian industrial orders and sales for April and the French wages report for the first quarter are expected to influence deals in the upcoming European session.
There are no major market moving reports due out from the U.S. Today.
Canada’s leading indicators index for May and international securities transactions data for April are slated for release at 8:30 am ET.