Australian, NZ Dollars Advance Amid Risk Appetite

The Australian and the NZ dollars strengthened against their major counterparts in the Asian session on Friday amid risk appetite, as Asian shares followed Wall Street higher, as optimism about progress in U.S.-China trade talks that are continuing in Beijing helped offset worries about a global economic slowdown.

The U.S. delegation led by trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin arrived in Beijing on Thursday for the latest round of talks.

Chinese Vice Premier Liu He is expected to travel to Washington next week, but any final deal to end the trade war is expected to be agreed only at a proposed summit between President Xi Jinping and U.S. counterpart Donald Trump.

The negotiations could be extended for weeks, or even months, said White House economic adviser Larry Kudlow.

On the economic front, data from the Reserve Bank of Australia showed that Australia's private sector credit rose 0.3 percent on month in February, exceeding expectations for a gain of 0.2 percent, which would have been unchanged from the January reading.

On a yearly basis, private sector credit climbed 4.2 percent - matching forecasts and slowing from 4.3 percent in the previous month.

The aussie strengthened to 2-day highs of 78.61 against the yen and 1.5825 against the euro, from its early lows of 78.24 and 1.5874, respectively. If the aussie rises further, 80.5 and 1.56 are likely seen as its next resistance levels against the yen and the euro, respectively.

The aussie climbed to 2-day highs of 0.9533 against the loonie and 1.0452 against the kiwi, off its early lows of 0.9498 and 1.0431, respectively. The next possible resistance for the aussie is seen around 0.965 against the loonie and 1.06 against the kiwi.

The Australian currency reversed from an early low of 0.7070 against the greenback, rising to 0.7098. On the upside, 0.72 is possibly seen as the next resistance level for the aussie.

The kiwi advanced to 0.6800 against the greenback, from a session's low of 0.6774 seen at 7:00 pm ET. The kiwi is seen finding resistance around the 0.70 level.

The kiwi rose to a 2-day high of 75.31 against the yen, following a decline to 74.93 at 5:00 pm ET. The kiwi is poised to find resistance around the 77.00 level.

After falling to 1.6574 against the euro at 7:00 pm ET, the kiwi reversed direction and edged up to 1.6514. Further uptrend may take the kiwi to a resistance around the 1.62 level.

Looking ahead, Swiss KOF leading indicator and German jobless rate for March, U.K. GDP and current account data for the fourth quarter and mortgage approvals and M4 money supply for February are due in the European session.

In the New York session, Canada GDP data for January and industrial product price index for February, as well as U.S. personal income and spending data and new home sales for the same month, Chicago PMI and University of Michigan's consumer sentiment index for March are slated for release.

At 12:00 pm ET, Federal Reserve Governor Randal Quarles will deliver a speech about macroprudential policy at the Shadow Open Market Committee's Spring Meeting in New York.