Australian, NZ Dollars Higher On Improved Risk Sentiment

The Australian and NZ dollars climbed against their major counterparts in the European session on Wednesday, as China's move to drop more COVID-19 restrictions fuelled hopes for a rebound in the economic growth.

China decided to scrap containment measures for inbound travellers earlier this week, in a step towards reopening the economy.

Investors hope that the reopening of China's economy will prop up global economic growth.

Hong Kong eased more COVID restrictions, removing mandatory PCR tests for inbound travelers and the vaccine pass system to enter certain venues.

Hong Kong will also remove the rule that restricts public gatherings to 12.

The aussie climbed to near 2-week highs of 0.6801 against the greenback and 1.5653 against the euro, from its early lows of 0.6719 and 1.5815, respectively. The aussie is seen facing resistance around 0.70 against the greenback and 1.55 against the euro.

The aussie advanced to an 8-day high of 90.89 against the yen and a 6-day high of 0.9178 against the loonie, up from an early low of 89.71 and a 5-day low of 0.9084, respectively. The currency is likely to challenge resistance around 93.00 against the yen and 0.93 against the loonie.

The kiwi appreciated to 8-day highs of 84.85 against the yen and 0.6355 against the greenback, following a previous low of 83.67 and a 2-day low of 0.6258, respectively. The kiwi may challenge resistance around 86.00 against the yen and 0.66 against the greenback.

The kiwi touched a 1-week high of 1.6763 against the euro, off an early multi-week low of 1.6996. Should the kiwi strengthens further, it is likely to test resistance around the 1.66 level.

The kiwi recovered to 1.0698 against the aussie, after falling to near a 4-week low of 1.0765 in early deals. The kiwi may find resistance around the 1.045 region, if it rallies again.