The antipodean currencies such as the Australia and the New Zealand dollars strengthened against their major counterparts in the Asian session on Wednesday, as traders await the introduction of reciprocal tariffs by U.S. President Donald Trump to be announced later in the day. Some traders also continue to pick up stocks at a bargain after heavy selling in the previous sessions.
The AUD and NZD are benefited by a generally upbeat mood in the equities markets as well as optimism about the Chinese economy.
China's manufacturing activity grew in March at the quickest rate in a year, according to data released on Tuesday. Additionally, the recent stimulus plans to support economic recovery caused the antipodean currencies to rise.
There is uncertainty regarding the size and the scope of new U.S. tariffs that would take effect immediately after Trump's announcement.
The Washington Post noted that White House aides have drafted a proposal to impose tariffs of around 20% on most imports to the United States, but several options are on the table.
Treasury Secretary Scott Bessent reportedly told lawmakers that the U.S. president will impose the highest possible reciprocal tariffs on major trading partners.
It is feared that the U.S. President's 25% tariff on auto imports that are set to effect on Thursday (April 3), and a likely 20% levy on most imports, will push up inflation and impeded global economic growth.
In the Asian trading today, the Australian dollar rose to 5-day highs of 1.7117 against the euro and 94.58 against the yen, from yesterday's closing quotes of 1.7186 and 93.90, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.68 against the euro and 96.00 against the yen.
Against the U.S. and the Canadian dollars, the aussie advanced to 5-day highs of 0.6307 and 0.9019 from Tuesday's closing quotes of 0.6276 and 0.8976, respectively. On the upside, 0.65 against the greenback and 0.91 against the loonie are seen as the next resistance levels for the aussie.
The NZ dollar rose to 5-day highs of 85.99 against the yen, 1.8805 against the euro and 0.5740 against the U.S. dollar, from yesterday's closing quotes of 85.28, 1.8928 and 0.5700, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 87.00 against the yen, 1.86 against the euro and 0.58 against the greenback.
Against the Australian dollar, the kiwi advanced to a 2-day high of 1.0986 from Tuesday's closing value of 1.1007. The next possible upside target for the kiwi is seen around the 1.08 region.
Looking ahead, U.S. MBA mortgage approvals data, U.S. ADP employment data for March, U.S. factory orders for February and U.S. EIA crude oil data are slated for release in the New York session.
Antipodean Currencies Rise As Trump's "Liberation Day" Looms
The antipodean currencies such as the Australia and the New Zealand dollars strengthened against their major counterparts in the Asian session on Wednesday, as traders await the introduction of reciprocal tariffs by U.
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