NZ Dollar Rises Amid Rising Risk Appetite

The New Zealand dollar strengthened against the other major currencies in the Asian session on Thursday amid rising risk appetite, following the positive lead overnight from Wall Street and the surge in crude oil prices. However, gains are modest as investors preferred to stay on the sidelines after the third and final U.S. presidential debate ended.

Wednesday, the NZ dollar showed mixed trading against its major rivals. While the kiwi rose against the U.S. dollar, the yen and the euro, it held steady against the Australian dollar.

In the Asian trading, the NZ dollar rose to more than a 2-week high of 0.7266 against the U.S. dollar, a 6-week high of 1.5102 against the euro and nearly a 6-week high of 75.27 against the yen, from yesterday's closing quotes of 0.7229, 1.5169 and 74.77, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.73 against the greenback, 1.50 against the euro and 76.00 against the yen.

Against the Australian dollar, the kiwi advanced to a 10-day high of 1.0597 from an early 2-day low of 1.0695. The kiwi is likely to find resistance around the 1.04 area. Data from the Australian Bureau of Statistics showed that the unemployment rate in Australia was a seasonally adjusted 5.6 percent in September. That was beneath forecasts for 5.7 percent, which would have been unchanged from the previous month following a revision from 5.6 percent.

The Australian economy lost 9,800 jobs last month, well shy of expectations for an increase of 15,000, following the loss of 8,600 jobs in August.

Looking ahead, Eurozone current account data for August and U.K. retail sales data for September are slated for release later in the day.

The European Central bank will announce its interest rate decision at 7:45 am ET. The bank is forecast to keep its refi rate at zero percent and the deposit rate at -0.4 percent.

Following the announcement, European Central Bank President Mario Draghi will hold the customary post-meeting press conference.

In the New York session, U.S. weekly jobless claims for the week ended October 15, U.S. existing home sales data and leading indicators for September and U.S. Philly Fed manufacturing index for October are set to be published.

At 8:00 am ET, Bank of England Deputy Governor Nemat Shafik is expected to participate in a panel discussion about reform in the financial services industry at the Federal Bank of New York's conference.

At 8:30 am ET, Federal Reserve Bank of New York President William Dudley is scheduled to give welcome remarks at a conference entitled "Reforming Culture and Behavior in the Financial Services Industry: Expanding the Dialogue", in New York.

European Union leaders summit is due to be held in Brussels, later in the day.