Australian, NZ Strengthen On Recovery Hopes

The Australian and NZ dollars moved up against their major counterparts in the Asian session on Friday, as strong U.S. economic data and progress on vaccination rollouts supported hopes of economic recovery.

Overnight data showed that the number of Americans filing new claims for unemployment benefits dropped to a one-year low last week and U.S. economy grew at a faster pace than previously estimated in the fourth quarter of 2020.

In his first formal news conference, U.S. President Joe Biden promised to deliver 200 million doses of Covid-19 vaccine within his first 100 days in office.

Biden said that he is planning to hold China accountable to follow the rules and will invite an alliance of democracies to come to Washington to discuss the future.

Traders await U.S. data on personal income and spending and University of Michigan's final consumer sentiment index due later in the day for further hints about the strength of the economy.

The aussie advanced to 2-day highs of 0.7627 against the greenback, 0.9591 against the loonie and 1.0930 against the kiwi, off its early lows of 0.7573, 0.9548 and 1.0893, respectively. The next likely resistance for the aussie is seen around 0.78 against the greenback, 0.98 against the loonie and 1.13 against the kiwi.

Reversing from its early lows of 82.68 against the yen and 1.5528 against the euro, the aussie approached 3-day highs of 83.37 and 1.5448, respectively. If the aussie rises further, 86.00 and 1.50 are possibly seen as its next resistance levels against the yen and and the euro, respectively.

The NZ currency appreciated to 3-day highs of 76.33 against the yen and 1.6867 against the euro, from its early lows of 75.82 and 1.6934, respectively. The kiwi is likely to challenge resistance around 86.00 against the yen and 1.50 against the euro.

The kiwi rose to 0.6986 against the greenback, from a low of 0.6946 seen earlier in the session. On the upside, 0.72 is possibly seen as its next resistance level.

Looking ahead, German Ifo business sentiment index for March is due in the European session. U.S. personal income and spending data for February and University of Michigan's final consumer sentiment index for March will be featured in the New York session.