Australian And NZ Dollars Advance On Coronavirus Drug Hopes

The Australian and NZ dollars drifted higher against their major counterparts in the Asian session on Thursday, as promising trial results of Gilead Sciences' potential coronavirus treatment remdesivir boosted investor sentiment.

Gilead Sciences cited positive data emerging from the National Institute of Allergy and Infectious Diseases' study of its investigational antiviral remdesivir for the treatment of COVID-19. The company said the trial met its primary endpoint and that NIAID will provide detailed information at an upcoming briefing.

Gilead Sciences also announced positive data from a phase 3 trial evaluating 5-day and 10-day dosing durations of Remdesivir in hospitalized patients with severe COVID-19 infection with evidence of pneumonia and reduced oxygen levels.

Data from the Australian Bureau of Statistics showed that Australia export prices rose 2.7 percent on quarter and 2.3 percent on year.

Main contributors to the rise were: Gold, non-monetary (excluding gold ores and concentrates) (+11.4 percent); Metalliferous ores and metal scrap (+2.3 percent); Gas, natural and manufactured (+4.3 percent); and Meat and meat preparations (+4.0 percent).

The aussie climbed to near 2-month highs of 0.6570 against the greenback and 69.95 against the yen, reversing from its early lows of 0.6429 and 69.73, respectively. The aussie is seen finding resistance around 0.70 against the greenback and 74.00 against the yen.

The aussie recovered to 0.9106 against the loonie, from a 2-day low of 0.9071 hit at 9:00 pm ET. On the upside, 0.93 is possibly seen as the next resistance level for the aussie.

The aussie appreciated to more than a 2-month high of 1.6539 against the euro, after falling to 1.6627 at 9:30 pm ET. Further uptrend may take the aussie to a resistance around the 1.60 level.

The kiwi firmed to near a 2-month high of 1.7661 against the euro, more than 6-week high of 0.6149 against the greenback and a 10-day high of 65.51 against the yen, from its previous lows of 1.7755, 0.6117 and 65.29, respectively. The next possible resistance for the kiwi is seen around 1.70 against the euro, 0.65 against the greenback and 69.00 against the yen.

The kiwi rose to a 3-day high of 1.0670 against the aussie and held steady thereafter. The pair closed yesterday's deals at 1.0688.

Looking ahead, German jobless rate and Swiss KOF leading indicator for April, Eurozone inflation for the same month, jobless rate for March and GDP data for the first quarter are due in the European session.

At 7:45 am ET, the European Central Bank announces its decision on interest rates. Economists expect the refi rate and the marginal lending facility rate to be kept at 0.00 percent and -0.50 percent, respectively.

In the New York session, Canada GDP data for February and industrial product price index for March, as well as U.S. weekly jobless claims for the week ended April 24 and personal income and spending data for March are slated for release.