Australian, New Zealand Dollars Strengthen Against Majors

The Australian and the New Zealand dollars climbed against their major opponents in Asian deals on Monday amid higher oil prices, as U.S. Secretary of State Mike Pompeo said that Washington is ready to ensure safe navigation in the Middle East in the wake of attacks on oil tankers in the Gulf of Oman last week.

Pompeo blamed Iran for its assistance in the Gulf of Oman explosions but asserted that U.S. is not seeking a war.

“What you should assume is we are going to guarantee freedom of navigation throughout the strait,” he said in an interview on “Fox News Sunday.”

In economic front, the latest survey from BusinessNZ showed that New Zealand services sector continued to expand in May, and at a faster rate, with a performance of Services Index score of 53.6.

That’s up from 52.0 in April, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

The kiwi edged higher to 0.6511 against the greenback, 70.72 against the yen and 1.7215 against the euro, off its early lows of 0.6491, 70.45 and 1.7274, respectively. The kiwi is likely to challenge resistance around 0.67 against the greenback, 73.00 against the yen and 1.70 against the euro.

The NZ currency ticked up to 1.0558 against the aussie, from a low of 1.0589 hit at 6:30 pm ET. The next possible resistance for the kiwi is seen around the 1.03 area.

The aussie reversed from its early lows of 1.6320 against the euro and 0.9211 against the loonie, rising to 4-day highs of 1.6299 and 0.9230, respectively. The aussie is seen finding resistance around 1.60 against the euro and 0.94 against the loonie.

Recovering from its early lows of 74.51 against the yen and 0.6870 against the greenback, the aussie appreciated to 74.78 and 0.6885, respectively. If the aussie rises further, 77.5 and 0.715 are possibly seen as its next resistance levels against the yen and the greenback, respectively.

Looking ahead, NAHB housing market index and New York Fed’s Empire manufacturing survey for June are due in the New York session.

The material has been provided by InstaForex Company –

Source:: Australian, New Zealand Dollars Strengthen Against Majors

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