Australian, New Zealand Dollars Advance On Trade Optimism

The Australian and New Zealand dollars strengthened against their major counterparts in the Asian session on Monday amid rising risk appetite, as stronger than expected U.S. jobs data for October and renewed optimism about a U.S.-China trade deal improved sentiment.

U.S. Commerce Secretary Wilbur Ross said licenses could be granted to American firms to do business with China's Huawei, which was placed on a blacklist over alleged national security concerns earlier this year.

Ross expressed optimism about reaching a "phase one" trade deal with China this month.

Further adding to the upbeat sentiment, Federal Reserve Vice Chairman Richard Clarida said Friday that he's "very happy" with U.S. monetary policy and that the economy is "in a good place".

Data from Australian Bureau of Statistics showed that Australia's retail sales growth halved in September reflecting weak consumer spending despite interest rate cuts.

Retail turnover climbed 0.2 percent month-on-month in September, slower than the 0.4 percent increase seen in August. Economists had forecast sales to grow 0.4 percent again.

The aussie rose to 4-day highs of 0.6923 against the greenback, 74.95 against the yen and 1.6132 against the euro, from its early lows of 0.6904, 74.71 and 1.6171, respectively. The next possible resistance for the aussie is seen around 0.66 against the greenback, 73.00 against the yen and 1.70 against the euro.

The aussie edged up to 0.9095 against the loonie, from a low of 0.9074 hit at 7:30 pm ET. If the aussie extends rise, 0.915 is likely seen as its next resistance level.

The kiwi appreciated to near 3-month highs of 0.6464 against the greenback and 69.97 against the yen, reversing from its previous lows of 0.6427 and 69.56, respectively. The kiwi is likely to find resistance around 0.66 against the greenback and 73.00 against the yen.

Rebounding from its early lows of 1.7370 against the euro and 1.0751 against the aussie, the kiwi spiked up to near a 2-month high of 1.7278 and a 10-day high of 1.0708, respectively. The kiwi is seen finding resistance around 1.70 against the euro and 1.05 against the aussie.

Looking ahead, PMI reports from major European economies and Eurozone Sentix investor sentiment index for November are due in the European session.

In the New York session, U.S. durable goods orders and factory orders for September are scheduled for release.