Australian, NZ Dollars Rally As Trump Accepts Biden's Transition Process

The Australian and NZ dollars climbed against their major opponents in the Asian session on Tuesday, as the Trump administration has given approval to commence the formal transition process to President-elect Joe Biden.

Biden is expected to pick former Federal Reserve Chair Janet Yellen as Treasury Secretary, a pivotal role in which she would help shape and direct his economic policies.

Investors cheered developments surrounding the coronavirus vaccine. Recently, AstraZeneca announced that its vaccine for the novel coronavirus could be around 90 percent effective under one dosing regimen.

Data from the Australian Bureau of Statistics showed that Australia's exports increased in October on record iron ore shipments.

Exports grew 6 percent month-on-month to A$30.53 billion in October. On a yearly basis, exports were down 3 percent in October.

The aussie advanced to 1-week highs of 76.54 against the yen and 1.6181 against the euro, after dropping to 76.03 and 1.6252, respectively in early deals. The aussie is seen finding resistance around 78.00 against the yen and 1.58 against the euro.

Reversing from its early lows of 0.7283 against the greenback and 0.9526 against the loonie, the aussie edged higher to 0.7326 and 0.9556, respectively. Next key resistance for the aussie is likely seen around 0.75 against the greenback and 0.98 against the loonie.

The kiwi spiked up to a 2-1/2-year high of 0.6989 against the greenback and more than a 10-month high of 73.09 against the yen, off its early lows of 0.6916 and 72.23, respectively. The kiwi is poised to find resistance around 0.72 against the greenback and 76.00 against the yen.

The kiwi recovered from its early lows of 1.7111 against the euro and 1.0534 versus the aussie and jumped to more than a 9-month high of 1.6947 and more than a 7-month high of 1.0472, respectively. If the kiwi rises further, 1.66 and 1.03 are likely seen as its next resistance levels against the euro and the aussie, respectively.

Looking ahead, German Ifo business sentiment index for November is due in the European session.

U.S. consumer confidence index for November and FHFA's house price index and S&P/Case-Shiller home price index for September are scheduled for release in the New York session.