Commodity currencies such as the Australian, the New Zealand and the Canadian dollars strengthened against their major counterparts in the Asian session on Thursday, as crude oil price rose after data from the International Energy Agency showed a reduction in U.S. crude oil inventories.
Crude oil for August delivery are currently up $0.60 at $45.35 a barrel.
Data from the U.S. Energy Information Administration (EIA) showed a 2.5-million-barrel reduction in U.S. crude oil inventories.
Also, the EIA cut its forecast for U.S. oil demand growth in 2016.
Meanwhile, the latest domestic jobs figures and stronger iron ore prices also supported the Australian dollar.
In economic news, the Australian Bureau of Statistics said that the unemployment rate in Australia came in at a seasonally adjusted 5.8 percent in June. That was in line with expectations, and up from 5.7 percent in May.
The Australian economy added 7,900 jobs in June, shy of expectations for 10,000 following the increase of 19,200 jobs in the previous month.
In other economic news, data from the Australian Bureau of Statistics showed that the total number of new motor vehicle sales in Australia was up a seasonally adjusted 3.1 percent on month in June, standing at 99,162. On a yearly basis, sales were up 2.1 percent.
Data from Business NZ showed that the manufacturing sector in New Zealand continued to expand in June, and at an accelerated pace, with a Performance of Manufacturing Index score of 57.7. That's up from the revised 57.2 in May. It also marked a five-month high.
Data from the ANZ Bank and Roy Morgan showed that New Zealand's consumer confidence decreased slightly in July after improving in the previous month. The ANZ-Roy Morgan consumer confidence index fell to 118.2 in July from 118.9 in June. In May, the score was 116.2.
Wednesday, the Australian and the New Zealand dollars held steady against their major rivals.
Meanwhile, the Canadian dollar showed mixed trading against its major rivals. While the loonie rose against the U.S. dollar and the euro, it held steady against the yen.
In the Asian trading, the Australian dollar rose to 0.7638 against the U.S. dollar and 79.90 against the yen, from yesterday's closing quotes of 0.7607 and 79.47, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.78 against the greenback and 82.00 against the yen.
Against the euro, the Canadian and the New Zealand dollars, the aussie advanced to 1.4533, 0.9883 and 1.0431 from an early 2-day low of 1.4619, an 8-day low of 0.9842 and a 1-week low of 1.0540, respectively. The aussie may test resistance around 1.43 against the euro, 0.96 against the loonie and 1.03 against the kiwi.
The NZ dollar rose to 76.21 against the yen, from yesterday's closing value of 75.99. On the upside, 78.00 is seen as the next resistance level for the kiwi.
Against the euro and the U.S. dollar, the kiwi advanced to 1.5210 and 0.7294 from an early 1-week low of 1.5371 and a 2-day low of 0.7224, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 1.51 against the euro and 0.74 against the greenback.
The Canadian dollar rose to a 6-day high of 1.4356 against the euro, from yesterday's closing value of 1.4389. The loonie is likely to find resistance around the 1.42 area.
Against the U.S. dollar and the yen, the loonie advanced to a 1-week high of 1.2925 and a 2-day high of 80.99 from yesterday's closing quotes of 1.2977 and 80.49, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.27 against he greenback and 85.00 against the yen.
Meanwhile, safe have currencies such as the yen and the U.S. dollar fell against their major rivals.
The yen also fell on the Japanese government's fiscal stimulus plans and expectations that the Bank of Japan will implement additional easing measures in its upcoming monetary policy meeting at the end of the month.
The yen fell to nearly a 3-week low of 106.53 against the Swiss franc and a 2-day low of 116.41 against the euro, from yesterday's closing quotes of 106.02 and 115.86, respectively. If the yen extends its downtrend, it is likely to find support around 112.00 against the franc and 122.00 against the euro.
Against the pound, the yen dropped to 138.51 from an early 2-day high of 136.39. The yen may test support near the 160.00 area.
The yen edged down to 104.79 against the U.S. dollar, from yesterday's closing value of 104.48. On the downside, 108.00 is seen as the next support level for the yen.
The U.S. dollar fell to 1.3221 against the pound, from an early 2-day high of 1.3105. The greenback is likely to find support around the 1.50 region.
Against the euro and the Swiss franc, the greenback edged down to 1.1116 and 0.9829 from yesterday's closing quotes of 1.1088 and 0.9851, respectively. If the greenback extends its downtrend, it is likely to find support around 1.14 against the euro and 0.96 against the franc.
Looking ahead, Swiss producer and import price index for June is due to be released at 3:15 am ET.
The Bank of England will announce its interest rate decision at 7:00 am ET. Economists expect the bank to cut its interest rates to 0.25 percent from 0.50 percent. Meanwhile, the asset purchase target is likely to remain unchanged at GBP 375 billion.
In the New York session, Canada house price index for May, U.S. weekly jobless claims for the week ended July 9th and U.S. PPI for June are slated for release.
At 11:15 am ET, Federal Reserve Bank of Atlanta President Dennis Lockhart is expected to speak before the Global Interdependence Center Eighth Annual Rocky Mountain Economic Summit in Victor, United States.
At 1:15 pm ET, Federal Reserve Bank of Kansas City President Esther George is due to speak on the U.S. economy before a business and community leaders luncheon hosted by the Federal Reserve Bank of Kansas City in Oklahoma city, United States.
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