Wednesday, 17 October 2012 11:00
WELLINGTON/SYDNEY: The Australian dollar hit two-week highs against the greenback on Wednesday, while its New Zealand counterpart also gained ground thanks to buoyant risk appetite after Moody's maintained its investment grade rating on Spain.
Traders said there was some relief that Spain was not downgraded to junk status and optimism was growing that Madrid is moving closer to addressing its debt woes.
That saw the euro rise against the dollar, which in turn helped lift the Antipodean currencies. Stock markets across Asia were also firmer, reflecting the improved risk appetite.
"That's usually good for the Aussie and kiwi as well," said Joseph Capurso, a strategist at Commonwealth Bank.
The Aussie dollar rose as far as $1.0324 -- a high not seen since Oct 2 -- before relinquishing a bit of ground to last stand at $1.0307, up roughly 0.1 percent on the day.
Immediate resistance is seen around $1.0325/30, a level that had previously provided ...