Australian, NZ Dollars Advance On Strong Oil Prices

The Australian and NZ dollars climbed against their major counterparts in the Asian session on Thursday, as a steep reduction in output by the Organization of the Petroleum Exporting Countries and allies lifted oil prices.

OPEC and their allies, known as OPEC+, decided to slash production by 2 million barrels per day next month, the most since 2020.

The move came despite pressure from the U.S. to pump more oil to cool down prices.

Strong U.S. ISM services PMI data and ADP private sector jobs report fuelled uncertainty over the Federal Reserve's monetary policy stance.

U.S. non-farm payrolls data due on Friday could offer more clues on the Fed's rate hike trajectory in the future.

Data from the Australian Bureau of Statistics showed that Australia posted a seasonally adjusted merchandise trade deficit of A$8.324 billion in August.

That was shy of expectations for a surplus of A$10.1 billion and was down from the upwardly revised A$8.967 billion surplus in July (originally A$8.733 billion).

The aussie appreciated to 2-day highs of 0.6541 against the greenback and 94.53 against the yen, from its early lows of 0.6484 and 93.75, respectively. The next possible resistance for the aussie is seen around 0.70 against the greenback and 96.00 against the yen.

The aussie touched 2-day highs of 1.5168 against the euro and 0.8877 against the loonie, up from its prior lows of 1.5237 and 0.8816, respectively. The aussie is likely to face resistance around 1.50 against the euro and 0.90 against the loonie.

The kiwi climbed to near a 2-week high of 0.5814 against the greenback and a 2-week high of 84.01 against the yen, after falling to 0.5734 and 82.91, respectively earlier in the session. The kiwi is seen finding resistance around 0.645 against the greenback and 85.5 against the yen.

The kiwi approached 1.7071 against the euro, its highest level in a week. On the upside, 1.68 is likely seen as the next resistance level.

The kiwi edged up to 1.1245 against the aussie, from a low of 1.1307 seen at 6:45 pm ET. The kiwi may test resistance around the 1.10 level, if it rises again.

Looking ahead, German and U.K. construction PMIs for September, as well as Eurozone retail sales for August will be released in the European session.

The European Central Bank publishes the account of the monetary policy meeting of the Governing Council held on September 7-8 at 7:30 am ET.

U.S. weekly jobless claims for the week ended October 1 and Canada Ivey PMI for September are set for release in the New York session.