Australian, NZ Dollars Higher Amid U.S. Stimulus Approval

The Australian and NZ dollars climbed against their major counterparts in the Asian session on Thursday amid rising risk appetite, as the U.S. House of Representatives passed the $1.9 trillion coronavirus relief package and a tame U.S. consumer inflation data aided a retreat in U.S. bond yields.

U.S. inflation data reduced concerns about an overheating of the U.S. economy and helped U.S. Treasury yields to stabilize.

The U.S. House of Representatives voted 220-211 to pass COVID-19 relief package and send it to President Biden's desk for signature.

Focus will also be on the auction of 30-year U.S. Treasuries after an auction of 10-year notes on Wednesday drew sufficient demand.

Data from Statistics New Zealand showed that New Zealand food prices rose 1.2 percent on year in February - after gaining an annual 2.1 percent in the previous month.

On a monthly basis, food prices were down 0.9 percent unadjusted and 0.6 percent seasonally adjusted.

The aussie advanced to 1-week highs of 0.7763 against the greenback and 0.9797 against the loonie, up from its early lows of 0.7723 and 0.9747, respectively. The currency is likely to face resistance around 0.80 against the greenback and 0.99 against the loonie.

The aussie appreciated to 2-week highs of 84.45 against the yen and 1.5362 against the euro, after falling to 83.74 and 1.5431, respectively in early deals. If the aussie rises further, 86.00 and 1.50 are likely seen as its next resistance levels against the yen and the euro, respectively.

The Australian currency recovered to 1.0760 versus the kiwi, from a 2-day low of 1.0735 it touched at 5 pm ET. On the upside, 1.09 is possibly seen as its next resistance level.

The kiwi climbed to a 1-week high of 0.7221 against the greenback, 2-week high of 78.51 against the yen and near a 2-week high of 1.6525 against the euro, off its early lows of 0.7181, 77.78 and 1.6588, respectively. The kiwi is seen finding resistance around 0.74 against the greenback, 80.00 against the yen and 1.62 against the euro.

Looking ahead, the State Secretariat for Economic Affairs publishes Swiss economic forecasts at 3.00 am ET.

The European Central Bank will announce interest rate decision at 7:45 am ET. The ECB is expected to hold its main refi rate at a record low zero percent and the deposit rate at -0.50 percent.

In the New York session, U.S. weekly jobless claims for the week ended March 6 are scheduled for release.