Australian Dollar Rises As Most Asian Stock Markets Trade Higher

The Australian dollar strengthened against other major currencies in the Asian session on Friday, as most Asian stock markets traded higher, though gains are modest in most markets. Dovish comments from Federal Reserve Chair Janet Yellen and optimism about corporate earnings lifted investor sentiment.

Federal Reserve Chair Janet Yellen’s second day of testimony on Capitol Hill also attracted attention when she said gradual interest rate hikes are appropriate over the next few years.

Crude oil delivery for August is up by 0.02 percent of $46.10per barrel. The crude oil prices rebounded, a day after data confirmed the biggest drop in U.S. inventories fell the most in ten months.

The Energy Information Administration said crude inventories plunged by 7.6 million barrels, the biggest drop in ten months, as refining activity picked up.

Thursday, the Australian dollar had shown mixed trading against its major rivals. While the aussie rose against the U.S. dollar, the yen, and the euro, it fell against the NZ dollar. Against the Canadian dollar, the aussie held steady.

In the Asian trading, the Australian dollar rose to nearly a near 4-month high of 0.7746 against the U.S. dollar and nearly a 5-month high of 87.90 against the yen, from yesterday’s closing quotes of 0.7728 and 87.55, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.78 against the greenback and 89.00 against the yen.

Against the euro, the New Zealand and the Canadian dollars, the aussie advanced to 1.4715, 1.0581 and 0.9864 from yesterday’s closing quotes of 1.4744, 1.0558 and 0.9833, respectively. On the upside, 1.46 against the euro, 1.07 against the kiwi, and 1.01 against the loonie are seen as the next resistance levels for the aussie.

In today’s events, Eurozone trade balance for May is due to be released at 5:00 am ET.

In the New York session, U.S. CPI data, retail sales data and industrial production, all for June, U.S. business inventories for May, U.S….

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