Antipodean Currencies Rise Amid Risk Appetite, PMI Data

The Antipodean currencies such as the Australia and the New Zealand dollars strengthened against their major currencies in the Asian session on Tuesday amid risk appetite, following the broadly positive cues from global markets overnight, on easing fears of a wider Middle East conflict after Iran and Israel completed 'measured' counterattacks that were calibrated to avoid any casualties. Traders also scooped up bargains ahead of the release of a slew of U.S. economic data including key reports on personal income and spending.

Gains in iron ore miners, financial and technology stocks, also led to the upturn of investor sentiment.

The Australian Dollar started rising after the release of Australia's Judo Bank Purchasing Managers Index (PMI) data. The Composite PMI expanded to a 24-month high of 53.6 in April, from 53.3 in the prior month.

In the Asian trading today, the Australian dollar rose to a 1-week high of 1.6489 against the euro and a 6-day high of 1.0919 against the NZ dollar, from yesterday's closing quotes of 1.6512 and 1.0892, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.63 against the euro and 1.10 against the kiwi.

Against the U.S. dollar and the yen, the aussie advanced to 8-day highs of 0.6465 and 100.03 from Monday's closing quotes of 0.6449 and 99.86, respectively. On the upside, 0.66 against the greenback and 101.00 against the yen are seen as the next resistance level for the aussie.

The aussie edegd up to 0.8853 against the Canadian dollar, from yesterday's closing value of 0.8834. The aussie may test resistance near the 0.90 region.

The NZ dollar rose to nearly a 2-week high of 91.75 against the yen and a 5-day high of 1.7982 against the euro, from yesterday's closing quotes of 91.62 and 1.7990, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 93.00 against the yen and 1.78 against the euro.

Against the U.S. dollar, the kiwi edged up to 0.5928 from Monday's closing value of 0.5917. The kiwi is likely to find resistance around the 0.61 region.

Looking ahead, flash PMI reports from various European economies and U.K. for April, are due to be released in the European session.

In the New York session, U.S. building permits for March, U.S. Redbook report, U.S. flash PMI data for April, U.S. new home sales data for March and U.S. Richmond Fed manufacturing index for April are slated for release.