Australian, NZ Dollars Climb As China COVID Concerns Reduce

The Australian and NZ dollars climbed against their major counterparts in the European session on Tuesday, as European shares rose on hopes that China will ease its stringent COVID curbs following recent protests in several major cities.

China has suppressed demonstrations against Covid restrictions that broke out across the country over the weekend.

Chinese regulators removed a ban on equity refinancing for listed firms to support the property sector.

The latest move would enable developers to access fresh funding more effortless.

Beijing said it would boost vaccination for the elderly, which is vital for an eventual economic reopening.

The aussie climbed to 4-day highs of 1.5387 against the euro and 0.6743 against the greenback, from its previous low of 1.5566 and a 6-day low of 0.6640, respectively. The aussie is likely to challenge resistance around 1.49 against the euro and 0.70 against the greenback.

The aussie touched more than a 3-month high of 0.9046 against the loonie, reversing from a 6-day low of 0.8958 seen at 8:25 pm ET. If the aussie rises further, it may find resistance around the 0.92 level.

The aussie appreciated to 1.5387 against the euro, setting a 4-day high. Immediate resistance for the aussie is likely seen around the 1.49 level.

The kiwi rose to 0.6244 against the greenback and 86.30 against the yen, after falling to 0.6159 and near a 2-week low of 85.44, respectively in prior deals. The next possible resistance for the kiwi is seen around 0.66 against the greenback and 90.00 against the yen.

The kiwi rebounded against the aussie, with the pair trading at 1.0776. On the upside, immediate resistance is seen near the 1.06 level.

Against the euro, the kiwi was up at a 4-day high of 1.6614. The kiwi is seen finding resistance around the 1.62 mark.

Looking ahead, at 8:00 am ET, German preliminary CPI for November is scheduled for release.

Canada GDP data for September, U.S. consumer confidence index for November and FHFA's house price index and S&P/Case-Shiller home price index for September will be out in the New York session.