The Australian dollar climbed against its major counterparts in the Asian session on Wednesday, following a media report that China is preparing to partially ease ban on imports of Australian coal.
Bloomberg reported that Chinese authorities are proposing plans to ease the ban on Australian coal imports starting from April 1.
Chinese state-media downplayed the seriousness of the COVID-19 pandemic and cited the country’s experts as saying the infections caused by the virus were relatively mild for most people.
The signs that COVID infections may have peaked in some big Chinese cities is also aiding market sentiment as traders are hopeful of a swift post-COVID era recovery in China.
Traders also look ahead to the release of the Fed minutes later in the day, which could impact the outlook for interest rates.
The AUD/USD pair touched near a 3-week high of 0.6849. The aussie is seen finding resistance around the 0.71 level.
The AUD/JPY pair edged up to 89.17. The currency is likely to locate resistance around the 92.00 level.
The AUD/CAD pair climbed to an 8-1/2-month high of 0.9344. On the upside, 0.95 is likely seen as its next resistance level.
The AUD/NZD pair appreciated to a 1-1/2-month high of 1.0857. Should the aussie strengthens further, it is likely to test resistance around the 1.10 region.
The EUR/AUD pair fell to a fresh 3-week low of 1.5472. Immediate resistance for the currency is seen around the 1.53 level.
Looking ahead, PMI reports from major European economies and U.K. mortgage approvals for November are due in the European session.
U.S. ISM manufacturing PMI for December is set for release in the New York session.
The Fed minutes from the December 13-14 meeting will be published at 2:00 pm ET.