Australian Dollar Advances On Rising Risk Appetite

The Australian dollar traded higher against its major rivals in the Asian session on Wednesday amid rising risk appetite, as fears about the coronavirus receded on news that the spread of the infection has slowed in China.

U.S. President Donald Trump said Chinese President Xi Jinping told him the deadly virus will be gone by April as temperatures begin rising.

The new outbreak is hitting a peak and may be over by April, Zhong Nanshan, an 83-year-old epidemiologist who won fame for combating the SARS epidemic in 2003, said in an interview with Reuters.

The optimism comes as the death toll from the epidemic climbed past 1,100 and the World Health Organization warned of a "very grave threat for the rest of the world".

Survey data from Westpac showed that Australia's consumer confidence advanced in February but sentiment remained weak overall.

The Westpac-Melbourne Institute Index of Consumer Sentiment rose 2.3 percent to 95.5 in February from 93.4 a month ago.

The aussie strengthened to a 6-day high of 0.6738 against the greenback and a 5-day high of 74.03 against the yen, from its early lows of 0.6712 and 73.69, respectively. The next possible resistance for the aussie is seen around 0.71 against the greenback and 76.00 against the yen.

The aussie hit more than a 2-week high of 1.6205 against the euro, off its early low of 1.6267. If the aussie rises further, 1.60 is seen as its next resistance level.

In contrast, the aussie fell to a 5-day low of 1.0398 against the kiwi, from yesterday's closing value of 1.0477. The aussie may locate support around the 1.02 level.

Looking ahead, Eurozone industrial production for December is due in the European session.

Federal Reserve Chair Jerome Powell will testify on the Semiannual Monetary Policy Report before the Senate Banking Committee in Washington DC at 10:00 am ET.

In the New York session, U.S. monthly budget statement for January is scheduled for release.