Australian, NZ Dollars Higher On Stimulus Hopes

The Australian and NZ dollars moved up against their major counterparts in the Asian session on Monday amid rising risk appetite, as invested awaited U.S. stimulus package to prop up the economy hurt by the COVID-19 pandemic.

U.S. Treasury Secretary Steve Mnuchin said that Republicans have finalized a bill worth about $1 trillion in coronavirus relief funds.

Senate Republicans are proposing a package that will contain extended unemployment benefits with 70 percent "wage replacement".

Also soothing sentiment, data out of China showed profits at the country's industrial firms rose for a second straight month and at the fastest pace in over a year, adding to signs of economic recovery.

The aussie climbed to 4-day highs of 0.7146 against the greenback and 0.9557 against the loonie, after falling to 0.7083 and 0.9505, respectively in early deals. The currency is likely to find resistance around 0.73 against the greenback and 0.98 against the loonie.

The aussie edged up to 75.43 against the yen, from an early low of 75.07, and held steady thereafter. The aussie is seen finding resistance around the 78.00 level.

The aussie recovered to 1.6391 against the euro, from a 4-week low of 1.6436 hit earlier in the session. If the aussie rises further, 1.62 is possibly seen as its next resistance level.

The kiwi appreciated to a 4-day high of 0.6682 against the greenback, from a low of 0.6624 seen at 5:05 pm ET. Should the kiwi rises further, 0.68 is likely seen as its next resistance level.

Reversing from an early low of 70.24, the kiwi gained to 70.55 against the yen. Next key resistance for the kiwi is seen around the 72.00 area.

The kiwi bounced off to 1.7521 against the euro, from a 4-week low of 1.7572 registered earlier in the session. On the upside, 1.70 is likely seen as the next resistance level for the kiwi.

After dropping to 1.0699 at 10:50 pm ET, the kiwi rose back to 1.0682 versus the aussie. The kiwi is poised to find resistance around the 1.045 level.

Looking ahead, German Ifo business sentiment index for July is due in the European session.

In the New York session, U.S. durable goods orders for June are scheduled for release.