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 Thursday amid increased risk-on mood, as traders booked some profits after the recent upside in markets and a report showing the U.S. economy unexpectedly shrank in the first three months of 2025 generated some optimism about the outlook for interest rates.

Most of the major markets in the region closed for Labor Day, including China and Hong Kong.

The Australian dollar rose against its major peers after the release of Australia's trade data showing that the trade surplus increased more than expected in March as exports logged a stronger growth amid falling imports.

Data from the Australian Bureau of Statistics showed that the trade surplus surged to A$6.9 billion in March from A$2.8 billion in February. The surplus was seen at A$3.2 billion. The latest figure was the highest since February 2024.

Exports increased 7.6 percent from a month ago on higher non-rural goods shipments. Meanwhile, imports fell 2.2 percent driven by capital goods, data showed.

Another report from the ABS showed that import price inflation accelerated to 3.3 percent sequentially in the first quarter from 0.2 percent in the fourth quarter of 2024.

Meanwhile, export price inflation eased to 2.1 percent from 3.6 percent in the previous quarter.

On a yearly basis, import prices were up 3.2 percent and export prices declined 4.7 percent in the first quarter.

In other economic news, data from S&P Global showed that Australia's manufacturing activity continued to expand in April, but the pace of growth softened as the improvement in demand was restricted to the domestic sector. The final manufacturing Purchasing Managers' Index fell to 51.7 in April from 52.1 in March. The reading matched the flash estimate.

In the Asian trading today, the Australian dollar rose to a 2-day high of 0.6427 against the U.S. dollar, a 3-day high of 92.07 against the yen and a 4-week high of 1.7599 against the euro, from yesterday's closing quotes of 0.6411, 91.69 and 1.7662, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.66 against the greenback, 95.00 against the yen and 1.71 against the euro.

Against the Canada and the New Zealand dollars, the aussie edged up to 0.8860 and 1.0802 from Wednesday's closing quotes of 0.8841 and 1.0800, respectively. The aussie may test resistance around 0.91 against the loonie and 1.10 against the kiwi.

The NZ dollar rose to a 6-day high of 1.9009 against the euro, from yesterday's closing value of 1.9075. On the upside, 1.88 is seen as the next resistance level for the kiwi.

Against the U.S. dollar and the yen, the kiwi advanced to a 2-day high of 0.5952 and a 3-day high of 85.36 from Wednesday's closing quotes of 0.5936 and 84.90, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.60 against the greenback and 87.00 against the yen.

The Canadian dollar rose to more than 3-week highs of 104.18 against the yen and 1.5587 against the euro, from Wednesday's closing quotes of 103.71 and 1.5616, respectively. If the loonie extends its uptrend, it is likely to find resistance around 105.00 against the yen and 1.53 against the euro.

Against the U.S. dollar, the loonie edged up to 1.3784 from yesterday's closing value of 1.3794. The next possible upside target for the loonie is seen around the 1.35 region.

Looking ahead, the Bank of England's U.K. mortgage approvals data March and U.K. S&P Global final factory PMI data for April are slated for release in the European session.

In the New York session, U.S. weekly jobless claims data, U.S. and Canada PMI data for April and U.S. construction spending data for March are slated for release.