Wednesday, 19 December 2012 11:19
WELLINGTON/SYDNEY: The Australian and New Zealand dollars lost some ground against the euro and US dollar on Wednesday, but held near multi-year peaks against the yen on expectations the Bank of Japan will ease policy aggressively later this week.
The euro climbed to two-month highs of A$1.2602 and two-week peaks of NZ$1.5800 on tentative signs of progress in the US fiscal talks.
"There is a lot of optimism about Europe with Greece getting a six-notch ratings upgrade and about the US fiscal cliff," said Joseph Capurso, a strategist at Commonwealth Bank of Australia.
Rating agency Standard & Poor's raised Greece's sovereign rating to B-minus from selective default, citing its European partners' efforts to keep the country part of the euro.
The euro has now rallied 1 percent against the Aussie this week, having pierced the 61.8 percent retracement of the Oct-Nov move at A$1.2568.
Capurso sees room for further gains with the euro likely to ...