Antipodean currencies such as the Australia and New Zealand dollars strengthened against other major currencies in the Asian session on Friday, after Asian shares traded higher to earnings-driven rally among U.S. technology stocks and offset lingering concerns about the U.S. banking sector.
Traders now await the Fed's preferred inflation gauge later in the day for hints on when the Federal Reserve might consider pausing interest rate rises.
In economic news, private sector credit in Australia was up 0.3 percent on month in March, the Reserve Bank of Australia said on Friday, easing from 0.4 percent in the previous month. On a yearly basis, credit was up 6.8 percent.
Housing credit was up 0.3 percent on month and 5.5 percent on year, while personal credit fell 0.3 percent on month and was flat on year and business credit gained 0.4 percent on month and 10.6 percent on year. Broad money was up 0.6 percent on month and 6.8 percent on year.
Data from Australian Bureau of Statistics showed that Australia's final demand producer price index advanced by 1.0 percent quarter-on-quarter in the first quarter of 2023, accelerating from a 0.7 percent rise in fourth quarter of 2022. Also, the producer prices climbed 5.2 percent through the year to the first quarter.
Data from ANZ-Roy Morgan institute showed that New Zealand consumer confidence lifted to 79.3 in April, up from 77.7 in March.
In the Asian trading today, the Australian dollar rose to 3-day highs of 0.6642 against the U.S. dollar and 89.41 against the yen, from yesterday's closing quotes of 0.6630 and 88.77, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.69 against the greenback and 91.00 against the yen.
Against the euro, the aussie advanced to a 2-day high of 1.6606 from yesterday's closing value of 1.6623. The aussie may test resistance around the 1.59 area.
The aussie edged up to 0.9030 against the Canadian dollar, from yesterday's closing value of 0.9008. On the upside, 0.91 is seen as the next resistance level for the aussie.
The NZ dollar rose to a 3-day high of 83.06 against the yen and a 2-day high of 1.7895 against the euro, from yesterday's closing quotes of 82.38 and 1.7933, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 84.00 against the yen and 1.75 against the euro.
Against the U.S. and the Australian dollars, the kiwi edged up to 0.6159 and 1.0759 from yesterday's closing quotes of 0.6147 and 1.0783, respectively. The kiwi is likely to find its target resistance level around 0.63 against the greenback and 1.05 against the aussie.
Looking ahead, German unemployment rate for April, German and eurozone flash Q1 GDP data are slated for release in the European session.
At 4:00 am ET, President of the Bank Council Barbara Janom Steiner and Swiss National Bank Chairman, Thomas Jordan, will deliver speeches at Swiss National Bank general meeting of shareholders, in Bern, Switzerland.
In the New York session, German preliminary inflation data for April, Canada GDP data for February, U.S. PCE price index for March, U.S. Chicago PMI for April, U.S. University of Michigan final consumer sentiment index for April and U.S. Baker Hughes oil rig count data are due.
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