Australian, NZ Dollars Climb Amid Risk Appetite

The Australian and NZ dollars strengthened against their major counterparts in the European session on Tuesday, as European shares rose and China promised more stimulus measures to support the economy.

China's finance ministry said that Beijing would step up measures to boost demand and stabilize employment and prices in the second half of the year.

Premier Li Keqiang said that Beijing has rolled out more economic support policies this year than it did in 2020 and the extent of the stimulus has been "reasonable" and "appropriate."

European shares advanced on bargain hunting following a sell-off in the wake of Federal Reserve Chair Jerome Powell's Jackson Hole speech.

Banking shares rallied on expectations that they would benefit from higher interest rates.

The aussie advanced to 4-day highs of 0.6956 against the greenback and 1.1250 against the kiwi, off an early low of 0.6873 and a 4-day low of 1.1199, respectively. The aussie is seen finding resistance around 0.71 against the greenback and 1.14 against the kiwi.

Reversing from its early lows of 1.4535 against the euro and 0.8951 against the loonie, the aussie firmed to 4-day highs of 1.4419 and 0.9026, respectively. The currency is likely to find resistance around 1.42 against the euro and 0.92 against the loonie.

The aussie touched 96.20 against the yen, its strongest level since June 9. If the currency rises further, it may find resistance around the 98.00 level.

The kiwi reversed from its early lows of 0.6131 against the greenback and 1.6286 against the euro and rose to 4-day highs of 0.6194 and 1.6185, respectively. The kiwi is poised to find resistance around 0.64 against the greenback and 1.59 against the euro.

The kiwi appreciated to 85.66 against the yen, setting a fresh 2-week high. Next key resistance for the kiwi is seen around the 87.00 area.

Looking ahead, U.S. consumer confidence for August is set for release in the New York session.