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Aussie & NZ$ hold recent hefty gains on USD & euro

04 February, 2012 - Reuters

WELLINGTON/SYDNEY, Feb 3 (Reuters) - The Australian and New Zealand dollars held near multi-month highs against the greenback and all-time peaks on the euro on Friday, amid an improvement in risk appetite globally.

  • Some nerves ahead of a reading on China's service industry from HSBC. Any sign of weakness would hurt the Aussie given China is Australia's biggest export market.
  • The Aussie marks time at $1.0690, from $1.0712 in NY. It rose as far as $1.0758, on Thursday, a level not seen since Sept 1.
  • Aussie momentum still positive, having risen nearly five pct so far this year. Resistance seen in the $1.0758/1.0765 zone and support at $1.0682 and $1.0640. A sustained break higher could open the way for a retest of the 29-year peak of $1.1081 hit in July.
  • The kiwi last around $0.8310, after scaling a five-month peak of $0.8368 overnight.
  • It is up more than 7 pct this year, having traded a wide six cent-range. It is looking stretched technically. Support still around $0.8300 while the upper Bollinger band of $0.8372 likely caps the topside.
  • The euro remains under pressure vs the Antipodeans, at A$1.2267 against the Aussie, near record low A$1.2220 struck in mid-January. It also struggles on the kiwi at NZ$1.5784 , after hitting a record low of NZ$1.5708 on Thursday.
  • Antipodean currencies near multi-month highs on Swissy, with markets on guard for Swiss intervention to curb the racy currency against the euro. Aussie near 2-year highs at 0.9810 francs , while the kiwi at 0.7619 francs , having peaked to 0.7674 offshore, a level not seen since Nov 2010.
  • Markets await U.S. payroll data on Friday. Any upside surprise would boost risk sentiment further, but any disappointment could also add to the case for more stimulus from the Fed. Both outcomes would be positive for high yielding currencies.
  • New Zealand's migration losses increase in December to a decade high as more people leave for Australia and the flow of migrants eases. Loss of people underscores soft domestic demand and activity and backing rates on hold for longer. See

  • No major Australian data due with market looking ahead to the Reserve Bank of Australia's rate decision next week. Swap rates imply a 79 pct chance of a 25 bps cut, while interbank futures put it at 60 pct.
  • NZ has wages and jobs data next week, with a Reuters poll showing modest wage growth and job creation for a flat jobless rate.
  • NZ government bond prices a touch higher with local yields down three basis points.
  • Australian bond futures edge up. Three-year contract

    up 0.01 at 96.830 and the 10-year contract also 0.01 higher at 96.240, having matched an all-time high of 96.300 earlier in the week.

    (Australia and New Zealand bureaux)

    Copyright Thomson Reuters 2012. All rights reserved.

    The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

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