Commodity Currencies Rise Amid Risk-On Mood

(RTTNews) - The commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against their major currencies in the Asian session on Friday, as Asian stocks surged in thin holiday trade after ending 2025 on a subdued note. Regional trading volumes remained thin due to holidays in Japan, China and New Zealand.

Oil climbed on the first trading day of 2026 after capping its biggest annual drop since 2020. Gold jumped nearly 1.5 percent, extending upward momentum after recording its biggest jump since the 1979 oil crisis in 2025.

The dollar made a feeble start to 2026 after suffering its sharpest drop in eight years amid mounting economic uncertainties and rate cut expectations.

Current head Jerome Powell's term ends in May and President Donald Trump already said that he wants to see interest rates go down to 1 percent.

U.S. economic data due next week, including the U.S. payrolls report and jobless data may provide additional clues on whether the next Federal Reserve chief would opt for deeper interest-rate cuts.

In the Asian trading today, the Australian dollar rose to nearly a 2-month high of 1.1631 against the NZ dollar, from yesterday's closing value of 1.1586. The aussie may test resistance around the 1.17 region.

The aussie advanced to a 4-day high of 105.13 against the yen and a 3-day high of 0.9190 against the Canadian dollar, from Thursday's closing value of 104.52 and 0.9158, respectively. If the aussie extends its uptrend, it is likely to find resistance around 106.00 against the yen and 0.92 against the loonie.

Against the euro and the U.S. dollar, the aussie climbed to 2-day highs of 1.7538 and 0.6703 from yesterday's closing quotes of 1.7606 and 0.6672, respectively. On the upside, 1.74 against the euro and 0.68 against the greenback are seen as the next resistance levels for the aussie.

The NZ dollar rose to 2-day highs of 0.5771 against the U.S. dollar and 90.43 against the yen, from yesterday's closing quotes of 0.5759 and 90.22, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.58 against the greenback and 92.00 against the yen.

Against the euro, the kiwi advanced to a 2-day high of 2.0377 from Thursday's closing value of 2.0397. The kiwi may test resistance around the 2.01 region.

The Canadian dollar rose to 2-day highs of 1.3702 against the U.S. dollar and 114.51 against the yen, from yesterday's closing quotes of 1.3727 and 114.13, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.35 against the greenback and 115.00 against the yen.

Against the euro, the loonie advanced to a 2-day high of 1.6083 from Thursday's closing value of 1.6123. The loonie is likely to find resistance around the 1.59 region.

Looking ahead, Canada and U.S. S&P Global manufacturing PMI for December are due to be released in the New York session.