SYDNEY/WELLINGTON: The Australian and New Zealand dollars were dragged broadly higher on Monday after the Group of 20 countries stopped short of criticising Japan's reflationary policies, putting the yen on the backfoot.
The Aussie edged up to 102.79 yen, from a low of 100.84 on Friday, inching closer to five-year peaks set earlier this month. A break of 103 yen, the 61.8 percent retracement of the April fall, would target 105.43.
The kiwi nudged higher to 84.26 yen, after it tripped stops at 84.20. Next resistance is seen around 84.60 before testing 86.43, its highest since 2008.
The Antipodeans have gained at least 14 percent so far this year on expectations the yen created by the Bank of Japan's aggressive easing to kickstart the economy would eventually find a home in higher yielding assets.
Broad yen selling, with the US dollar charging in on a symbolic 100 yen, also supported the Antipodeans against the greenback and euro. The Aussie edged up to $1.0305, having recovered from a dip to $1.0266 in early trade, its weakest since March 11.
"I am modestly positive," said Matthew Johnson, a rate strategist at UBS, seeing good support at $1.0250.
"I am a buyer at $1.0250 because equities had a reasonable bounce for good reasons on Friday, and I don't think inflation numbers will be so low that the (Reserve Bank of Australia) will cut rates."
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