WELLINGTON/SYDNEY: The Australian dollar stood near two-week highs against the US dollar and flirted with a record peak against the euro on Wednesday, helped by strong results by mining giant BHP Billiton.
The Aussie firm at $1.0300 against $1.0292 in late Tuesday local trade, having briefly touched $1.0326 earlier.
It lost around 10 pips after nuclear power North Korea said it would issue "an important report" at 0300 GMT without giving more details.
Some talk North Korea might announce it was adopting the Chinese economic model, which would likely be seen as lessening geopolitical risks in the region.
Traders cite stops at $1.0330 and a break above would target $1.0370, the 61.8 pct Fibo of the $1.0857/$0.9581 move. With option-related sell orders between $1.0350 and $1.0370, gains could be capped. Support around $1.0212, the 100-day MA.
The New Zealand dollar steady at $0.7970, having touched $0.7995 offshore.
Market participants say further upside in the kiwi capped for the moment due to offers above $0.8000. Technical resistance also seen around $0.8000, a trendline level connecting the kiwi's 2012 peak hit in March with another high hit in April. * But it sees firm technical support after the kiwi makes a clean break above $0.7962, its 200-day moving average. The New Zealand currency is poised for more gains so long as it remains above that level.
BHP Billiton posted strong growth in iron ore production in June quarter with Australian output forecast to rise by 5 pct in 2013, despite risks of cooling demand in top customer China.
This underpins the Aussie across the board with EUR/AUD near overnight record lows. Last at A$1.1925, having hit an all-time trough of A$1.1884 earlier. Trendline support at A$1.1820 looks within reach.
Against the yen, Aussie nears a one-week high at 81.56 yen . Local dollar close to a two-year peak against the Swissy as the SNB keeps the franc steady against the euro. Last at 1.0055 francs, having touched 1.0098, its highest since May 2010.
Aussie was already well supported after minutes from the Reserve Bank of Australia's July meeting showed policymakers saw "no need" to cut rates earlier this month. * Markets immediately pared expectations for an August rate cut, with interbank futures now implying a one-in-three chance, down from as high as 60 pct.
Risk currencies got a lift offshore following comments from Fed chief Ben Bernanke to Congress. Though Bernanke said nothing new, his reiteration that he would take further easing measures if necessary was enough to trigger a rally in euro.
Investors shake off a fall in global dairy prices at NZ dairy giant Fonterra's latest auction. Prices slipped 0.9 percent -- the third straight fall, although the fall was much less than previous declines.
New Zealand government bonds slightly softer, nudging yields 2.5 basis points higher across the curve.
Australian debt futures steady, with the three-year contract at 97.740 and the 10-year contract at 97.155.
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