2016.06.2204:14:00UTC+00Australian Dollar Rises Amid Risk Appetite

The Australian dollar advanced against the other major currencies in the early European session on Wednesday, as investors wait for Fed Chair Janet Yellen's second day of testimony on Capitol Hill later today and Thursday's British Brexit vote on its membership in the European Union.

The U.K.'s FTSE 100 index is currently up 0.50 percent or 31.11 points at 6,257, France's CAC 40 index is up 0.63 percent or 27.68 points at 4,394 and Germany's DAX is up 0.76 percent or 75.75 points at 10,091.

British Prime Minister David Cameron has predicted a "Remain dividend", with an investment surge into Britain, if the country votes on to stay in the 28-nation bloc. But he admitted: "It's very close; nobody knows what's going to happen."

Meanwhile, higher oil prices also boosted sentiment. The oil price rose after a report showed a decline in U.S. weekly domestic crude stockpiles.

Crude oil for August delivery are currently up $0.44 to $50.29 a barrel.

The American Petroleum Institute report showed that the crude inventories in the U.S. slipped by 5.2 million barrels over the week to June 17, more than the 1.5 million barrels fall expected. Moreover, the strengthening global demand for the crude oil with declining U.S. oil output, also supported the oil price.

Traders await the U.S. crude oil inventories official data from the Energy Information Department due later in the day.

In the Asian trading today, the Australian dollar held steady against its major rivals.

In the early European session, the Australian dollar rose to nearly a 2-month high of 1.5052 against the euro, from an early low of 1.5109. The aussie may test resistance around the 1.45 area.

Against the U.S. and the Canadian dollars, the aussie advanced to 0.7483 and 0.9567 from early 2-day lows of 0.7441 and 0.9531, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.77 against the greenback and 0.98 against the loonie.

The aussie climbed to 1.0466 against the NZ dollar, from an early 5-day low of 1.0443. On the upside, 1.07 is seen as the next resistance level for the aussie.

Against the yen, the aussie edged up to 78.30 from an early low of 77.78. The next possible upside target level for the aussie is seen around the 81.00 area.

Looking ahead, Swiss ZEW economic expectation index for June is due to be released at 5:00 am ET.

In the New York session, Canada retail sales data for April, U.S. FHFA house price index for April, Eurozone consumer confidence index for June, U.S. existing home sales data for May and U.S. crude oil inventories data are due.

At 10:00 am ET, Federal Reserve Chair Janet Yellen will testify on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC.