Antipodean Currencies Rise Amid Risk-on Mood

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars strengthened against their major currencies in the Asian session on Friday as Asian stock markets traded higher, boosted by the surge in semiconductor and AI stocks amid reports that the $28 billion SK Hynix IPO in the U.S. was heavily oversubscribed. Speculation that the escalation of hostilities between the U.S. and Iran will be limited is also aiding market sentiment.

Traders remain optimistic that a full-blown war can be avoided in the Middle East after US President Donald Trump claimed that Iran wants to "make a deal so badly," although that is in line with his typical rhetoric. He added that he doesn't know if they're worthy of making a deal.

While Trump's position indicated an uncertainty on how he plans to resolve the crisis, experts are of the view that diplomatic measures would be given full chance.

The Reserve Bank of Australia's (RBA) hawkish tone has strengthened the Australian dollar (AUD) versus the US dollar (USD).

According to Reuters, RBA Assistant Governor Sarah Hunter stated on Wednesday that the board will take necessary action to bring inflation back to its target, cautioning that some tightening might be necessary if the oil shock raises inflation expectations.

The Official Cash Rate (OCR) is now 4.35% after the Australian central bank raised interest rates by 25 basis points (bps) three times this year.

The Reserve Bank of New Zealand's (RBNZ) hawkish stance continues to support the New Zealand Dollar (NZD), which works as a tailwind for the NZD/USD pair combined with a generally weaker US Dollar (USD).

After the June monetary policy meeting concluded on Wednesday, the RBNZ increased the Official Cash Rate (OCR) by 25 basis points (bps) to 2.50%, as was generally anticipated. The central bank also stated that in order to reduce inflationary pressures, monetary support will probably need to be further reduced.

In the Asian trading today, the Australian dollar rose to nearly a 3-week high of 0.6970 against the U.S. dollar, from yesterday's closing value of 0.6944. The aussie may test resistance around the 0.71 region.

Against the yen and the euro, the aussie advanced to 2-day highs of 1.6443 and 0.9853 from Thursday's closing quotes of 1.6468 and 0.9837, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.63 against the yen and 0.99 against the euro.

The NZ dollar rose to a 1-month high of 1.9783 against the euro and more than a 1-month high of 1.2014 against the Australian dollar, from yesterday's closing quotes of 1.9845 and 1.2051, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 1.96 against the euro and 1.97 against the aussie.

Against the U.S. dollar and the yen, the kiwi advanced to more than 3-week highs of 0.5793 and 93.58 from Thursday's closing quotes of 0.5761 and 93.55, respectively. The kiwi may test resistance around 0.59 against the greenback and 95.00 against the yen.

Looking ahead, Canada jobs data for June and building permits for May, and U.S. weekly Baker Hughes oil rig count data are slated for release in the New York session.