2024.01.1905:14:00UTC+00Australian Dollar Rises Amid Risk Appetite

The Australian dollar strengthened against other major currencies in the Asian session on Friday amid risk appetite, as markets were boosted by the rally in technology stocks that mirrored their peers on Nasdaq. Mining and energy stocks were also up amid a rebound in commodity prices.

Crude oil prices climbed higher, lifted by data showing a drop in U.S. crude inventories last week, and on higher forecasts for global demand. West Texas Intermediate Crude oil futures for February rallied $1.52 at $74.08 a barrel.

On Thursday, the Australian dollar started rebounding from early losses against its major rivals. Meanwhile, the aussie slipped as the Australian economy jobs lost in December.

In the Asian trading now, the Australian dollar rose to an 8-day high of 97.69 against the yen and a 2-day high of 1.6513 against the euro, from yesterday's closing quotes of 97.33 and 1.6541, respectively. If the aussie extends its uptrend, it is likely to find resistance around 99.00 against the yen and 1.62 against the euro.

Against the U.S. and the Canadian dollars, the aussie advanced to 2-day highs of 0.6590 and 0.8884 from Thursday's closing quotes of 0.6570 and 0.8860, respectively. The aussie may test resistance around 0.67 against the greenback and 0.90 against the loonie.

The aussie climbed to nearly a 2-week high of 1.0788 against the NZ dollar, from yesterday's closing value of 1.0741. On the upside, 1.08 is seen as the next resistance level for the aussie.

Looking ahead, U.K. retail sales for December, Germany and Switzerland producer prices data for December, are slated for release in the pre-European session.

At 4:30 am ET, ECB board member Elizabeth McCaul will participate at 12th Institute for Law and Finance (ILF) Conference on the Future of the Financial Sector "Navigating higher rates, volatility and liquidity crises: Finance and Regulation in the New Monetary Order" in Frankfurt, Germany.

At 5:00 am ET, European Central Bank President Christine Lagarde participates in stakeholder dialogue "the Global Economic Outlook" during World Economic Forum in Davo, Switzerland.

In the New York session, Canada retail sales data for November, U.S. University of Michigan consumer sentiment for January, U.S. existing home sales data for December and U.S. Baker Huges oil rig count data are set to be published.

At 1:00 pm ET, Federal Reserve Vice Chair for Supervision Michael Barr participates in discussion on "Bank Regulation" before the Responsible AI Symposium: Advancing a Blueprint for Tech Equity" hosted by the National Fair Housing Alliance, in Washington D.C., U.S.

At 4:15 pm ET, Federal Reserve Bank of San Francisco President Mary Daly will participate in fireside chat before hybrid event, "A Future Outlook: Innovation & Economic Growth in San Diego", California, U.S.