CANBERA (dpa-AFX) - The Australian dollar strengthened against other major currencies in the Asian session on Friday, amid optimism about possible trade deals, with U.S. President Donald Trump saying he has 'potential' trade deals with India, South Korea and Japan as well as expressed optimism about a resolution with China. Traders are also booking some profits following the recent upside in the markets.
A spokesperson for China's ministry of commerce announced today that Beijing was assessing the possibility of tariff negotiations with the United States.
The statement comes a day after a Weibo account linked to Chinese state media said the U.S. had been seeking to initiate discussions.
In economic news, data from the Australian Bureau of Statistics showed that Australia's retail sales grew at a slightly faster pace in March with higher food-related spending in supermarkets and grocery stores. Retail turnover climbed 0.3 percent month-on-month in March, slightly faster than the 0.2 percent rise in February. However, this was weaker than economists' forecast of 0.4 percent.
On a yearly basis, retail sales advanced 4.3 percent after a 3.7 percent rise in February.
Another report from the ABS showed that final demand rose 0.9 percent sequentially in the first quarter and by 3.7 percent from the same period last year.
In the Asian trading today, the Australian dollar rose to nearly a 1-month high of 1.7595 against the euro and a 1-month high of 93.48 against the yen, from yesterday's closing quotes of 1.7689 and 92.86, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.70 against the euro and 96.00 against the yen.
Against the Canada and the New Zealand dollars, the aussie advanced to a 2-day high of 0.8873 and nearly a 3-week high of 1.0825 from Thursday's closing quotes of 0.8843 and 1.0800, respectively. The aussie may test resistance around 0.91 against the loonie and 1.09 against the kiwi.
The aussie edged up to 0.6424 against the U.S. dollar, from yesterday's closing value of 0.6385. On the downside, 0.65 is seen as the next resistance level for the aussie.
Meanwhile, the safe-haven currency yen weakened against other major currencies in the Asian session amid optimism about possible trade deals with U.S. and China.
In economic news, data from the Ministry of Internal Affairs and Communications showed that the unemployment rate in Japan came in at a seasonally adjusted 2.5 percent in March. That was higher than forecasts for 2.4 percent, which would have been unchanged from the February reading.
Data from the Bank of Japan showed that the monetary base in Japan was down 4.8 percent on year in April, coming in at 656.977 trillion yen. That missed expectations for a decline of 2.0 percent on year following the upwardly revised 3.1 percent contraction in March.
In the Asian trading today, the yen fell to more than a 4-month low of 164.63 against the euro and a 1-month low of 193.74 against the pound, from Thursday's closing quotes of 164.27 and 193.19, respectively. If the yen extends its downtrend, it is likely to find support around 166.00 against the euro and 197.00 against the pound.
Against the U.S. dollar and the Swiss franc, the yen slid to more than a 3-week low of 145.92 and more than a 2-week low of 175.74 from yesterday's closing quotes of 145.41 and 175.44, respectively. On the downside, 152.00 against the greenback and 178.00 against the franc are seen as the next support levels for the yen.
Against the New Zealand and the Canadian dollars, the yen dropped to 1-month lows of 93.48. 86.44 and 105.41 from Thursday's closing quotes of 92.86, 85.98 and 105.01, respectively. The next possible support levels for the yen are seen around 88.00 against the kiwi and 107.00 against the loonie.
Looking ahead, Eurozone manufacturing PMI data for April, flash inflation for April and unemployment data in March are slated for release in the European session.
In the New York session, U.S. unemployment rate for April, factory orders for March and U.S. Baker Hughes oil rig count data are slated for release.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
