Australian, NZ Dollars Higher Amid Rising Risk Appetite

The Australian and NZ dollars moved up against their major counterparts in the Asian session on Tuesday, as most Asian stock markets rose following the mostly positive cues from Wall Street and amid hopes for more coronavirus-related stimulus in the U.S.

A decline in coronavirus hospitalizations in New York, California and Texas also underpinned sentiment.

U.S. congressional leaders and officials in President Donald Trump's administration said on Monday they were ready to resume coronavirus aid talks.

Survey results from the National Australia Bank showed that Australia's business conditions improved further in July ahead of the escalation of stage 4 restrictions in Victoria, while business confidence weakened from June.

With the improvement in three sub-components, the business conditions index advanced to zero in July from -8 in June.

The aussie appreciated to 4-day highs of 0.7186 against the greenback and 76.25 versus the yen, after falling to 0.7145 and a 5-day low of 75.67, respectively in early deals. The aussie is seen finding resistance around 0.75 against the greenback and 78.00 versus the yen.

The aussie reversed from its early 5-day low of 0.9538 versus the loonie, rising to 0.9574. If the aussie rises further, 0.98 is likely seen as its next resistance level.

The aussie touched near a 2-week high of 1.6353 against the euro, up from a low of 1.6425 set at 7:15 pm ET. On the upside, 1.59 is likely seen as its next resistance level.

The kiwi spiked up to 4-day highs of 0.6627 against the greenback, 70.30 versus the yen and 1.7732 against the euro, coming off from its early lows of 0.6583, 69.73 and 1.7819, respectively. The next possible resistance for the kiwi is seen around 0.68 against the greenback, 72.00 versus the yen and 1.74 against the euro.

The kiwi approached 1.0834 against the aussie. This may be compared to a low of 1.0858 hit at 9:15 pm ET. The kiwi is likely to challenge resistance around the 1.06 level.

Looking ahead, German ZEW economic sentiment for August is due in the European session.

At 8:15 am ET, Canada housing starts for July are set for release.

U.S. PPI for July will be out in the New York session.