The Australian and New Zealand dollars climbed against their major counterparts in the Asian session on Tuesday amid rising risk appetite, as sentiment boosted after China’s securities regulator said it would enhance market liquidity, and encourage share buybacks and mergers and acquisitions by listed firms.
The China Securities Regulatory Commission said that it would increase stock market liquidity, lessen unnecessary interference in trading, and create a level playing ground for investors in order to prevent a slide in shares.
Market sentiment also got a boost amid reports that China is considering a tax cut to revive its flagging automotive market.
Figures from the Australian Bureau of Statistics showed that Australia’s building approvals increased in September driven by construction of apartments.
Dwelling approvals rose by seasonally adjusted 3.3 percent in September but slower than the 3.8 percent rise economists had expected.
The aussie climbed to 0.7096 against the greenback and 1.6038 against the euro, off its early lows of 0.7053 and 1.6118, respectively. The aussie is seen finding resistance around 0.72 against the greenback and 1.57 against the euro.
The aussie strengthened to a 6-day high of 79.98 against the yen, after falling to 79.25 at 5:00 pm ET. The next possible resistance for the aussie is seen around the 82.00 level.
Data from the Ministry of Internal Affairs and Communications showed that Japan’s unemployment rate declined in September.
The jobless rate fell to 2.3 percent from 2.4 percent in August. This was the lowest rate since early 1990s. The rate was expected to remain unchanged at 2.4 percent.
Reversing from an early 4-day low of 0.9261 against the loonie, the aussie advanced to 0.9303. The aussie is likely to test resistance around the 0.94 level.
The kiwi firmed to a session’s high of 0.6556 against the greenback, after having dropped to 0.6520 at 5:00 pm ET. If the kiwi rises further, 0.67 is likely seen as its next resistance level.
The kiwi appreciated to a 6-day high of 73.89 against the yen and an 11-day high of 1.7359 against the euro, from its early lows of 73.26 and 1.7444, respectively. On the upside, 75.00 and 1.71 are likely seen as the next resistance levels for the kiwi against the yen and the euro, respectively.
The kiwi rose to 1.0819 against the aussie, from an early low of 1.0844, and held steady thereafter. The kiwi is poised to find resistance around the 1.06 level.
Looking ahead, Swiss KOF leading indicator and German jobless for October, Eurozone GDP data for the third quarter and economic sentiment index for October are due in the European session.
German preliminary consumer inflation data for October is set for release at 9:00 am ET.
In the New York session, U.S. consumer confidence for October and S&P Case/Shiller home price index for August will be out.