The Australian dollar continued to be higher against its most major counterparts in the European session on Friday, after Scott Morrison sworn in as the new Prime Minister of Australia, ousting Malcolm Turnbull in a leadership contest.
There were three challengers in the leadership battle – former home affairs minister Peter Dutton, Morrison, and former deputy leader and foreign minister Julie Bishop.
Morrison defeated Dutton by 45-40 votes. Morrison has been serving as the country’s treasurer. Morrison will pick his new cabinet over the weekend, which would be sworn in next week.
Investors focus on U.S. Federal Reserve Chairman Jerome Powell’s big Jackson Hole speech for Fed views on Turkey’s currency crisis and the U.S.-Chinese trade spat.
The currency has been trading in a positive territory in the previous session.
The aussie appreciated 1.05 percent to 0.7314 against the greenback, from an 8-day low of 0.7238 seen at 10:00 pm ET. Continuation of the aussie’s uptrend may see it challenging resistance around the 0.75 level.
Data from the Commerce Department showed that U.S. durable goods orders slumped much more than expected in the month of July.
The Commerce Department said durable goods orders tumbled by 1.7 percent in July after climbing by 0.7 percent in June. Economists had expected durable goods orders to drop by 0.5 percent.
The aussie added 1.08 percent to a 3-day high of 81.45 against the yen, after having declined to 80.58 at 5:00 pm ET. Next key resistance for the aussie is seen around the 83.00 level.
Data from the Bank of Japan showed that Japan’s producer prices rose 1.1 percent on year in July.
That was unchanged from the June reading following a downward revision from 1.2 percent. It was also beneath forecasts for 1.2 percent.
The aussie remained higher at 1.5863 against the euro, following a 3-1/2-month slide to 1.5947 at 10:00 pm ET. The aussie may test resistance around the 1.54 area.
Data from Destatis showed that Germany’s economy expanded at a faster pace as initially estimated on domestic demand in the second quarter.
The largest euro area economy grew 0.5 percent sequentially, following the 0.4 percent increase in the first quarter. The rate came in line with the estimate released on August 14.
The aussie was up by 0.7 percent at 0.9544 against the loonie, reversing from a low of 0.9473 touched at 5:00 pm ET. Further uptrend may take the aussie to a resistance around the 0.97 level.
The aussie firmed to 1.0970 against the kiwi, marking a 0.6 percent rise from a low of 1.0909 hit at 10:00 pm ET. The aussie is likely to challenge resistance around the 1.12 area, if it rallies further.