Australian, NZ Dollars Firm On Hopes For Stimulus Deal

The Australian and NZ dollars moved up against their major counterparts in the Asian session on Thursday, as strong U.S. data and optimism over a stimulus deal underpinned risk sentiment.

Treasury Secretary Steven Mnuchin said that there is progress in stimulus talks on coronavirus relief bill and would continue to negotiate with Democrats.

Better-than-expected ADP private payrolls data raised expectations that the last U.S. jobs report before the November election due out later this week will probably show the labor market's rebound continued in September.

Survey from IHS Markit showed that Australia's manufacturing sector continued to expand in September, and at a faster rate, with a manufacturing PMI score of 55.4.

That's up from 53.6 in August and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

The aussie climbed to a 9-day high of 0.7189 against the greenback and a 10-day high of 75.86 against the yen, after falling to 0.7155 and 75.45, respectively in previous deals. The aussie is poised to find resistance around 0.73 against the greenback and 78.00 against the yen.

Reversing from its early lows of 1.6378 against the euro and 0.9525 against the loonie, the aussie edged up to 1.6331 and 0.9554, respectively. Next key resistance for the aussie is possibly seen around 1.62 against the euro and 0.98 against the loonie.

The NZ currency appreciated to an 8-day high of 0.6641 against the greenback and a 10-day high of 70.07 against the yen, up from its previous lows of 0.6608 and 69.69, respectively. The kiwi is seen finding resistance around 0.68 against the greenback and 72.00 against the yen.

The kiwi gained to 1.7692 against the euro, following a fall to 1.7719 at 9:30 pm ET. If the kiwi rises further, 1.74 is likely seen as its next resistance level.

The kiwi recovered to 1.0810 versus the aussie, off its early low of 1.0834. On the upside, 1.06 is likely found as its next resistance level.

Looking ahead, PMI reports from major European economies, Eurozone PPI and jobless rate for August are due in the European session.

Canada building permits for August, U.S. weekly jobless claims for the week ended September 26, ISM manufacturing for September, construction spending for August and personal income and spending data for the same month will be released in the New York session.