Commodity Currencies Rise As Most Asian Shares Advance

The Commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against their major currencies in the Asian session on Tuesday, with investors looking ahead to the upcoming monetary policy meetings of several central banks, and some key economic data, for clues about the likely timing of interest rate cuts.

Energy stocks are gaining ground on higher oil prices amid rising geopolitical tensions.

Brent crude futures rose 25 cents, or 0.3 percent to $82.65 a barrel. U.S. West Texas Intermediate crude futures was up 31 cents or 0.4 percent, at $77.09 a barrel.

Meanwhile, the Chinese markets are hurt by real estate major China Evergrande's liquidation order.

On the economic front, data from the Australian Bureau of Statistics showed that the total value of retail sales in Australia was down a seasonally adjusted 2.7% on month at A$35.187 billion in December. That missed expectations for a decline of 1% following the downwardly revised 1.6% gain in November.

On a yearly basis, retail sales were up 0.8% in December, the data showed.

In the Asian trading today, the Australian dollar rose to more than a 2-week high of 1.6357 against the euro, from yesterday's closing value of 1.6384. The aussie may test resistance near the 1.61 region.

Against the U.S. and the Canadian dollars, the aussie advanced to a 2-week high of 0.6625 and a 4-day high of 0.8879 from yesterday's closing quotes of 0.6610 and 0.8865, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.67 against the greenback and 0.90 against the loonie.

Against the yen, the aussie edged up to 97.52 from Monday's closing value of 97.49. On the upside, 99.00 is seen as the next resistance level for the aussie.

The NZ dollar rose to more than a 2-week high of 1.7608 against the euro and a 6-day high of 0.6146 against the U.S. dollar, from yesterday's closing quotes of 1.7661 and 0.6131, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 1.73 against the euro and 0.62 against the greenback.

Against the Australian dollar and the yen, the kiwi advanced to 1.0758 and 90.31 from Monday's closing quotes of 1.0766 and 90.43, respectively. The next possible upside resistance levels for the kiwi are seen around 1.06 against the aussie and 89.00 against the yen.

The Canadian dollar rose to more than a 2-week high of 1.3401 against the U.S. dollar and more than a 3-month high of 1.4503 against the euro, from yesterday's closing quotes of 1.3411 and 1.4528, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.32 against the greenback and 1.44 against the euro.

Against the yen, the loonie edged up to 110.02 from Monday's closing value of 109.92. On the upside, 111.00 is seen as the next resistance level for the loonie.

Looking ahead, the fourth quarter German GDP data, the Bank of England mortgage approvals data for December, Eurozone flash GDP data for the fourth quarter and monthly economic sentiment survey results for January are due to be released in the European session.

In the New York session, U.S. Redbook report, U.S. S&P Case-Shiller house price index for November and U.S. Consumer Board consumer confidence for January are slated for release.