Antipodean currencies such as the Australian and New Zealand dollars strengthened against their major counterparts in the Asian session on Wednesday as Asian stock markets traded higher with modest gains after North Korea’s launch of a missile over Japan seemed to ease.
In other economic news, data from the Australian Bureau of Statistics showed that the total number of building approvals in Australia issued in July fell a seasonally adjusted 1.7 percent on month in July, standing at 18,299. That beat forecasts for a decline of 5.0 percent following the upwardly revised 11.7 percent spike in June.
On a yearly basis, approvals fell 13.9 percent, again beating expectations for a decline of 16.6 percent after dipping 2.3 percent in the previous month.
Also, the ABS said that the total value of construction work done in Australia in the second quarter of 2017 was up a seasonally adjusted 9.3 percent on quarter in the second three months of 2017, coming in at A$51.669 billion.
That beat expectations for an increase of 1.0 percent following the 0.7 percent decline in the three months prior.
Data from Statistics New Zealand showed that the total number of building permits issued in New Zealand slipped a seasonally adjusted 0.7 percent on month in July, standing at 2,762. That follows the downwardly revised 1.3 percent decline in June.
In the Asian trading, the Australian dollar rose to more than a 3-week high of 87.81 against the yen and a 5-day high of 1.4980 against the euro, from yesterday’s closing quotes of 87.21 and 1.5045, respectively. If the aussie extends its uptrend, it is likely to find resistance around 89.00 against the yen and 1.47 against the euro.
Against the U.S., the Canadian and the New Zealand dollars, the aussie advanced to a 1-month high of 0.7996, nearly a 2-week high of 1.0003 and a 5-1/2-month high of 1.1017 from yesterday’s closing quotes of 0.7947, 0.9943 and 1.0956, respectively. The aussie may test resistance near 0.81 against the greenback, 1.01 against the loonie and 1.11 against the kiwi.
The NZ dollar rose to a 1-week high of 79.84 against the yen and a 2-day high of 1.6465 against the euro, from yesterday’s closing quotes of 79.56 and 1.6505, respectively.If the kiwi extends its uptrend, it is likely to find resistance around 81.00 against the yen and 1.60 against the euro.
Against the U.S. dollar, the kiwi advanced to 0.7278 from yesterday’s closing value of 0.7249. The kiwi may test resistance near the 0.74 region.