Australian, NZ Dollars Appreciate Amid Rising Risk Appetite

The Australian and NZ dollars advanced against their major counterparts in the Asian session on Friday, as most Asian stock markets rose following the overnight rally on Wall Street as the prospects of more fiscal stimulus under the Biden administration raised hopes for an economic recovery.

U.S. President Trump called for calm and pledged to ensure a smooth and orderly transition of power to the new administration.

Optimism about the coronavirus vaccinations in the U.S. and the U.K., as well as continued hopes for more stimulus underpinned sentiment.

The all-important U.S. non-farm payrolls data is due later in the day.

The U.S. economy is expected to have added 71,000 jobs in December, down from a gain of 245,000 jobs in November.

The unemployment rate is forecast to grow to 6.8 percent in December from 6.7 percent in November.

The aussie rose to 0.7778 against the greenback and 0.9859 against the loonie, up from its prior lows of 0.7740 and 0.9829, respectively. The aussie is likely to challenge resistance around 0.81 against the greenback and 1.00 against the loonie.

The aussie spiked up to more than a 2-year high of 80.80 against the yen and near a 2-year high of 1.5768 against the euro, after weakening to 80.48 and 1.5814, respectively. Next key resistance for the aussie is seen around 82.00 against the yen and 1.54 against the euro.

The aussie bounced off to 1.0705 against the kiwi, from a low of 1.0688 hit at 8:00 pm ET. On the upside, 1.09 is possibly seen as its next resistance level.

The kiwi was trading higher at 0.7265 against the greenback, after having fallen to 0.7239 at 8:15 pm ET. The kiwi is seen finding resistance around the 0.74 level.

The kiwi approached near a 2-year high of 75.49 against the yen and a 2-day high of 1.6877 against the euro, rising from its early lows of 75.24 and 1.6913, respectively. The kiwi is poised to test resistance around 78.00 against the yen and 1.66 against the euro.

Looking ahead, U.K. Halifax house prices for December and Eurozone jobless rate for November are set for release in the European session.

U.S. and Canadian jobs data for December, as well as U.S. wholesale inventories and consumer credit for November are due in the New York session.