Australian and kiwi dollars jump

The Australian dollar held within striking distance of a fresh 29-year peak on the US currency on Friday and scaled an 11-month high on the yen as investors continued to pile into carry trades. The Aussie continues to defy expectations of a correction, after gaining more than 6 percent over the past fortnight, as increasing economic optimism has driven gains in growth sensitive assets such as equities and commodity currencies.
"I just don't think the Aussie has finished its move higher yet. I still has a bit further to go," said Nick Socratous, head of global foreign exchange at HSBC. In late trade the Aussie was holding firm at $1.0344, having hit a peak of $1.0373 in New York. It also climbed to 86.69 yen, a level not seen since May, while the kiwi struck a six-week peak of 63.81 yen, a long way from this month's low around 55.00.
Both currencies clocked a whopping gain of around 16 percennt on the yen since mid-March The New Zealand dollar nudged up to $0.7626 in late trade, just off a six-week high of $0.7648 during the New York session. Its climb also puzzled analysts. The Aussie continued its descent against the kiwi, last trading at NZ$1.3563, as the cross-rate is seen facing headwinds about NZ$1.36.