Australian Dollar Rises As Asian Markets Trade Higher

The Australian dollar strengthened against other major currencies in the Asian session on Tuesday, as Asian markets traded higher, though gains are modest, following the lackluster cues overnight from Wall Street.

Investors are cautious as they eye the European Central Bank forum on central banking currently underway in Portugal and an address by Federal Reserve Chair Janet Yellen at an event in London later in the day.

Crude oil delivery for August is currently up by 0.11 percent or $43.49 per barrel. The crude oil price nudged higher, stemming steep recent losses on talk of OPEC’s resolve to re-balance oil markets.

Meanwhile, the Australian dollar firmed on news that Chinese industrial profits growth accelerated in May from a year ago.

Data from the National Bureau of Statistics showed that China’s industrial profits grew at a faster pace of 16.7 percent year-over-year in May, following a 14.0 percent spike in April.

Monday, the Australian dollar had risen 0.21 percent against the U.S. dollar, 0.67 percent against the yen, 0.31 percent against the euro, and 0.19 percent against the NZ dollar. Meanwhile, the Australian dollar held steady against the Canadian dollar.

In the Asian trading, the Australian dollar rose to 1-week highs of 0.7604 against the U.S. dollar and 85.07 against the yen, from yesterday’s closing quotes of 0.7584 and 84.84, respectively. If the aussie extends its uptrend, it may find find resistance around 0.77 against the greenback and 86.00 against the yen.

Against the euro and the Canadian dollar, the aussie advanced to a 6-day high of 1.4718 and a 5-day high of 1.0074 from yesterday’s closing quotes of 1.4740 and 1.0046, respectively. The aussie may test resistance around 1.45 against the euro and 1.02 against the loonie.

Against the NZ dollar, the aussie edged up to 1.0422 from yesterday’s closing value of 1.0406. On the upside, 1.05 is seen as the next resistance level for the aussie.

Meanwhile, the safe-haven yen fell against its major…

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