After the news on Blinken and Lavrov’s meeting late next week, risk trades have fared better and are extending gains in European morning trade. In particular, the aussie and kiwi have been rather resilient since yesterday and are now contesting key technical levels on the way up today.
The latest news from Ukraine’s defence minister here isn’t going to do any harm in that regard.
AUD/USD is now up 0.6% to 0.7227 and AUD/JPY is up 0.9% to 83.30 and contesting a break above key daily trendline resistance @ 83.13:
That will very much pave the way for an extended upside leg in the pair as risk tones start to turn for the better.
Meanwhile, NZD/USD is also up 0.6% to 0.6729 and is starting to solidify a daily break above 0.6700:
The 10 February high @ 0.6733 is a key resistance level to watch but a break above that will open up the path towards 0.6800 next potentially as long as the risk mood holds up in the sessions ahead.
Elsewhere, the dollar and yen are struggling somewhat with EUR/USD up slightly to 1.1370 and USD/JPY also trading up to 115.29 on the day. The yen is the major laggard with both AUD/JPY and NZD/JPY up by 0.9% currently.