Australian, New Zealand Dollars Climb On Trade Deal Hopes

The Australian and New Zealand dollar strengthened against their major counterparts in the Asian session on Friday amid risk appetite, as investors awaited U.S. jobs data and focused on developments in China-U.S. trade talks.

Hopes for a trade deal increased after US President Donald Trump remarked that US-China trade talks are "moving right along."

Investors also look ahead to the release of U.S. payrolls data due tonight.

Economists expect U.S. employment to increase by 180,000 jobs in November after an increase of 128,000 jobs in October. The jobless rate is expected to hold at 3.6 percent.

Data from the Australian Industry Group and Housing Industry Association showed that Australia's construction sector contracted further in November.

The Performance of Construction Index fell 3.9 points to 40.0 in November. A score below 50 indicates contraction in the sector.

The aussie rose to 0.6846 against the greenback and 74.45 against the yen, from its early lows of 0.6830 and 74.24, respectively. If the aussie rises further, 0.70 and 76.5 are likely seen as its next resistance levels against the greenback and the yen, respectively.

Reversing from its early lows of 1.6257 against the euro and 0.8998 against the loonie, the aussie edged higher to 1.6222 and 0.9024, respectively. The aussie is seen locating resistance around 1.60 against the euro and 0.92 against the loonie.

The kiwi advanced to 0.6561 against the greenback, 71.34 against the yen and 1.6925 against the euro, off its previous lows of 0.6541, 71.09 and 1.6978, respectively. The kiwi is poised to test resistance around 0.68 against the greenback, 73.00 against the yen and 1.65 against the euro.

Looking ahead, UK Halifax house price data is due in the European session.

U.S. and Canadian jobs data for November, U.S. wholesale sales and consumer credit for October and University of Michigan's preliminary consumer sentiment index for December will be featured in the New York session.