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 Monday amid risk-on mood by the investors, boosted by strong gains in Taiwan, Japan and South Korea amid a rebound in semiconductor stocks following the sell-off last week. Some traders are also looking to buy stocks at a bargain following the recent weakness. Markets also keep an eye on the ongoing peace talks to end hostilities in the Middle East.

Markets have recovered following a tech slump brought on by Democrats' resounding win in the US midterm elections.

According to some media reports, as the confrontation with Iran continues, US President Donald Trump will meet with the prime minister of Qatar at the White House today to discuss a fresh ceasefire and resuming nuclear negotiations.

The upside of the yellow metal could be attributed to speculation that new Democrats would strive to stop the war with Iran.

The AUD and NZD started rising against their major peers in the Asian trading after the release of China economic data.

Data from the National Bureau of Statistics showed that the overall consumer prices in China were flat on a seasonally adjusted monthly basis in September. That was in line with expectations following the 0.2 percent increase in September.

On a yearly basis, inflation rose 0.7 percent - shy of expectations for 0.8 percent and down from 0.9 percent in the previous month.

The bureau also said that producer prices jumped 5.7 percent on year - above forecasts for 5.3 percent and up from 5.0 percent a month earlier.

The NZD started rising against its major currencies in the Asian trading as the governing coalition narrowly prevailed in the preliminary results of the country's general election.

According to the preliminary results of the New Zealand elections, Prime Minister Christopher Luxon's center-right National Party and his coalition partner, the Labor Party, have secured 67 of the 131 seats in the legislature, giving them a slim majority. However, final outcomes won't be known until November 27. The leaders of the main parties have confirmed that they won't begin talks until then.

In economic news, the total number of building permits issued in Australia was up a seasonally adjusted 5.1 percent on month in September, the Australian Bureau of Statistics said on Monday - coming in at 17,948. That was in line with expectations following the 5.2 percent decline in August. On a yearly basis, permits sank -0.8 percent - again matching forecasts following the 12.1 percent spike in the previous month.

Permits for private sector houses were down 5.3 percent on month and up 9.6 percent on year at 10,432. Permits for private sector dwellings excluding houses jumped 16.6 percent on month and tumbled 20.5 percent on year.

The value of residential building fell 2.8 percent to A$11.06 billion, while the value of non-residential building surged 45.9 percent to A$7.96 billion.

Crude oil prices moved higher on continued signals of war risk after U.S. President Donald Trump refused to rule out renewing attacks on Iran. West Texas Intermediate crude for December delivery was up $0.46 or 0.51 percent at $90.98 per barrel.

In the Asian trading today, the Australian dollar rose to 4-day highs of 1.6158 against the euro and 0.9739 against the Canadian dollar, from Friday's closing quotes of 1.6231 and 0.9702, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.59 against the euro and 0.99 against the loonie.

Against the U.S. dollar and the yen, the aussie climbed to 0.6903 and 109.25 from last week's closing quotes of 0.6866 and 108.81, respectively. The loonie may test resistance around 0.70 against the greenback and 112.00 against the yen.

The NZ dollar rose to nearly a 1-1/2-month high of 1.2290 against the Australian dollar, from last week's closing value of 1.2380. The kiwi is likely to find resistance around the 1.21 region.

Against the U.S. dollar, the yen and the euro, the kiwi advanced to 4-day highs of 0.5607, 88.65 and 1.9926 from Friday's closing quotes of 0.5546, 87.89 and 2.0094, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.58 against the greenback, 0.90 against the yen and 1.98 against the euro.

Looking ahead, U.S. Consumer Board's employment trends index for October, U.S. wholesale inventories and sales data for September and U.S. consumer inflation expectations for October are slated for release in the New York session.