The Australian dollar strengthened against other major currencies in the Asian session on Tuesday amid risk appetite, as investors welcomed China's announcement of a slew of measures over the weekend to bolster the country's equity market as well as fuel an increase in spending and drive economic growth. The resultant firming of commodity prices also aided sentiment.

China put forth stimulus to ease market unrest and drive economic growth. It reduced stamp duty on stock trades by 50 percent and will slow down the pace of initial public offerings. China's securities regulator also approved the launch of 37 retail funds.

Traders also look ahead to an upcoming speech by incoming Reserve Bank of Australia governor Michele Bullock later in the day for clues on the outlook for domestic interest rates and the broader economy.

In the Asian trading today, the Australian dollar rose to more than a 1-month high of 1.0889 against the NZ dollar and a 2-week high of 94.47 against the yen, from yesterday's closing quotes of 1.0874 and 94.21, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.09 against the kiwi and 96.00 against the yen.

Against the U.S. and the Canadian dollars, the aussie advanced to 5-day highs of 0.6454 and 0.8769 from yesterday's closing quotes of 0.6429 and 0.8742, respectively. The aussie may test resistance around 0.68 against the greenback and 0.90 against the loonie.

The aussie edged up to 1.6792 against the euro, from yesterday's closing value of 1.6823. On the upside, 1.63 is seen as the next resistance level for the aussie.

The NZ dollar rose to 0.5929 against the U.S. dollar and 86.79 against the yen, from yesterday's closing quotes of 0.5909 and 86.61, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.62 against the greenback and 88.00 against the yen.

Against the euro, the kiwi edged up to 1.8277 from Monday's closing value of 1.8297. On the upside, 1.79 is seen as the next resistance level for the kiwi.

Meanwhile, the safe-haven currencies such as the U.S. dollar and the Japanese yen weakened against its major counterparts amid risk appetite.

The U.S. dollar fell to 4-day lows of 1.0839 against the euro and 1.2633 against the pound, from yesterday's closing quotes of 1.0817 and 1.2603, respectively. If the greenback extends its downtrend, it is likely to find support around 1.11 against the euro and 1.28 against the pound.

Against the yen and the Swiss franc, the greenback edged down to 146.31 and 0.8826 from yesterday's closing quotes of 146.54 and 0.8836, respectively. The greenback is likely to find support around 143.00 against the yen and 0.86 against the franc.

The greenback slipped to 1.3587 against the Canadian dollar, from Monday's closing value of 1.3597. On the downside, 1.33 is seen as the next support level for the greenback.

In economic news, data from the Ministry of Internal Affairs and Communications showed that the unemployment rate in Japan came in at a seasonally adjusted 2.7 percent in July. That exceeded expectations for 2.5 percent, which would have been unchanged from the June reading.

The yen fell to a 1-week low of 158.66 against the euro and a 6-day low of 184.99 against the pound, from yesterday's closing quotes of 158.51 and 184.68, respectively. If the yen extends its downtrend, it is likely to find support around 160.00 against the euro and 188.00 against the pound.

Against the Swiss franc, the yen dropped to 165.88 from Monday's closing value of 165.77. The yen may test support around the 168.00 region.

Looking ahead, U.S. S&P/Case Shiller house price index for June and U.S. CB consumer confidence for August are due to be released in the New York session.

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