Australian Dollar Rises Amid Rising Risk Appetite

The Australian dollar strengthened against the other major currencies in the Asian session on Monday amid rising risk appetite, tracking the gains on Wall Street Friday. However, lower commodity prices weighed on resources stocks.

Investors are also keenly awaiting the outcome of the Bank of Japan and the U.S. Federal Reserve's policy meetings later in the week.

Meanwhile, the other Antipodean currency, the NZ dollar, fell against its most major rivals on the back of weak commodity prices.

Crude oil for September delivery are currently down $0.02 to $44.17 a barrel. The crude oil prices fell on concerns over rising gasoline stockpiles. Also, the U.S. Baker Hughes rig Count data showed that the number of oil and gas rigs have increased this week.

The NZ dollar fell to a 4-day low of 0.6957 against the U.S. dollar, from Friday's closing value of 0.7001. The kiwi may test support near the 0.68 region.

Against the euro and the yen, the kiwi edged down to 1.5745 and 74.12 from an early 5-day high of 1.5628 and a 4-day high of 74.62, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.63 against the euro and 0.71 against the yen.

Last Friday, the Australian dollar fell 0.52 percent against the U.S. dollar, 0.21 percent against the yen and 0.08 percent against the euro.

In the Asian trading, the Australian dollar rose to a 6-day high of 0.9825 against the Canadian dollar, from Friday's closing value of 0.9795. On the upside, 1.00 is seen as the next resistance level for the aussie.

Against the yen and the euro, the aussie advanced to 4-day highs of 79.69 and 1.4660 from last week's closing quotes of 79.12 and 1.4699, respectively. If the aussie extends its uptrend, it is likely to find resistance around 82.00 against the yen and 1.44 against the euro.

Against the U.S. and the New Zealand dollars, the aussie climbed to 0.7481 and 1.0719 from last week's closing quotes of 0.7455 and 1.0647, respectively. The aussie may test resistance around 0.77 against the greenback and 1.09 against the kiwi.

Looking ahead, German Ifo business climate index for July is due to be released at 4:00 am ET.