Commodity Currencies Rise As Asian Shares Traded Higher

(RTTNews) - The commodity currencies such as the Australia, the New Zealand and the Canadian dollars strengthened against some major currencies in the Asian session on Wednesday, as Asian stock markets traded higher, with the Japanese market closed for a holiday, and as traders seemed reluctant to make significant moves ahead of the release of the closely watched U.S. monthly jobs report later in the day that could influence the US Fed's outlook for interest rates.

Oil prices edged up after rising over 1 percent in the previous session following a U.S. advisory warning of potential supply disruptions in key shipping routes.

Amid ongoing tensions between Washington and Tehran, the U.S. Department of Transportation's Maritime Administration on Monday advised U.S.-flagged vessels travelling through the Strait of Hormuz to stay away from Iranian territory.

The agency also urged the captains of the ships against granting Iranian forces permission to board U.S. vessels.

Benchmark Brent crude futures rose half a percent to $69.36 a barrel while WTI crude futures were up 0.4 percent at $64.59.

Investors are bracing for U.S. retail sales, jobs and inflation readings this week that could influence the timetable of the Federal Reserve's next interest-rate cut.

U.S-Iran tensions were also in focus, with Iran warning of "destructive" influence on diplomacy ahead of Israeli Prime Minister Benjamin Netanyahu's visit to Washington this week.

The Reserve Bank of Australia (RBA) policymaker's hawkish comments also led to the upturn of AUD.

Andrew Hauser, the deputy governor of the Reserve Bank of Australia, stated on Wednesday that policymakers were determined to take all necessary steps to curb inflation because it was too high.

After the first quarter (Q1) inflation report was released, markets currently pricing in a nearly 70% chance that interest rates will increase to 4.10% at the RBA's May meeting.

Data from the National Bureau of Statistics showed that China inflation softened in January due to Lunar New Year holiday effects, while producer price deflation softened. Consumer price inflation weakened to 0.2 percent in January from 0.8 percent in December. Inflation was seen at 0.4 percent.

On a monthly basis, consumer prices gained 0.2 percent, slightly slower than the expected growth of 0.3 percent.

Core inflation that excludes prices of food and energy, eased to 0.8 percent from 1.2 percent in the prior month.

Producer prices declined at a slower pace of 1.4 percent in January after easing 1.9 percent in the previous month, the NBS said in a separate report. Economists were forecast a 1.5 percent fall for January.

Meanwhile, the Japanese yen strengthened following Prime Minister Sanae Takaichi's overwhelming election victory and foreign inflows into Japanese stocks raising demand for the Japanese yen (JPY).

In the Asian trading today, the Australian dollar rose to a 3-year high of 0.7129 against the U.S. dollar, nearly a 1-year high of 1.6712 against the euro and nearly a 5-year high of 0.9639 against the Canadian dollar, from early lows of 0.7073, 1.6811 and 0.9440, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.73 against the greenback, 1.66 against the euro and 1.02 against the loonie.

Against the NZ dollar, the aussie jumped to nearly a 13-year high of 1.1757 from a 2-day low of 1.1478. The aussie may test resistance around the 1.18 region.

The NZ dollar rose to nearly a 2-week high of 0.6067 against the U.S. dollar and a 2-day high of 1.9637 against the euro, from early lows of 0.6040 and 1.9685, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.61 against the greenback and 1.94 against the euro.

The Canadian dollar rose to nearly a 2-week high of 1.3517 against the U.S. dollar, from an early low of 1.3554. The loonie is likely to find resistance around the 1.34 region.

Against the euro, the loonie edged up to 1.6099 from an early low of 1.6121. If the loonie extends its uptrend, it is likely to find resistance around the 1.59 region.

Looking ahead, Canada building permits for December, U.S. MBA mortgage approvals data, U.S. jobs data for January, and U.S. EIA crude oil data are slated for release in the NEw York session.

Japanese stock markets are closed in observance of National Founding Day holiday.