Australian, NZ Dollars Higher As Asian Stocks Rally

The Australian and NZ dollars climbed against their major counterparts in the Asian session on Wednesday, as Asian markets followed Wall Street higher, following strong earnings reports and on indications that Russia's state-owned energy company, Gazprom, will be restarting gas flows via the Nord Stream 1 pipeline on Thursday.

Russian gas flows through the Nord Stream 1 pipeline will resume as scheduled after a shutdown to carry out maintenance.

Netflix reported on Tuesday that its second quarter earnings beat analysts' forecasts and its subscriber losses were narrower than expected.

China's central bank left its benchmark lending rates unchanged, with one-year and five-year loan prime rates at 3.7 percent and 4.45 percent, respectively.

Reserve Bank of Australia Governor Philip Lowe said that CPI data for the June quarter is expected to show a further step-up in the inflation rate and further rate hikes would be needed over the months ahead.

The aussie appreciated to a fresh 3-week high of 0.6927 against the greenback and a 1-1/2-month high of 95.62 against the yen, off its early lows of 0.6893 and 95.09, respectively. The aussie is likely to challenge resistance around 0.71 against the greenback and 97.5 against the yen.

The aussie edged up to 0.8906 against the loonie, from a low of 0.8873 set at 9:30 pm ET. If the aussie rises further, it may find resistance around the 0.90 level.

The aussie touched 1.4794 against the euro, its highest level since July 14. It may face resistance around the 1.43 level.

The NZ currency reversed from its early lows of 0.6221 against the greenback and 85.96 against the yen, rising to a fresh 3-week high of 0.6272 and a 4-week high of 86.59, respectively. The next possible resistance for the kiwi is seen around 0.64 against the greenback and 89.00 against the yen.

The kiwi strengthened to 1.6334 against the euro and 1.1036 against the aussie, setting 2-day highs. The kiwi is poised to find resistance around 1.62 against the euro and 1.08 against the aussie.

Looking ahead, Eurozone current account for May is due in the European session.

Canada CPI and U.S. existing home sales for June are set for release in the New York session.

Eurozone flash consumer sentiment index for July will be out at 10:00 am ET.