The Australian and kiwi dollars gained some traction on Thursday as signs key Asian economies are on track for solid growth offset worries of a slowdown following Japan's massive earthquake last month. The Aussie jumped as far as $1.0545, from $1.0503 in New York, after media reported a strength in China's retail sales and industrial output.
The Aussie, last traded at $1.0533, had been on the defensive this week as investors trimmed their long positions following a massive run-up. Support for the Aussie is now seen at $1.0458 and resistance at $1.0585, its 29-year high struck on Friday. The New Zealand dollar leapt to a five-month high of $0.7959 from $0.7885, before steadying around $0.7948. The next major target for the kiwi is November 8's high of $0.7976 with support at $0.7868.
The kiwi has also pushed higher on Aussie, the euro and sterling, supported by the flow of billions of dollars of reinsurance payments into the country after the deadly February 22 earthquake in Christchurch. Against its Aussie neighbour, the kiwi continued to appreciate, with the cross-rate touching a seven-week low of NZ$1.3247. The kiwi surged to a two-month high against the sterling at NZ$2.0518 and similarly to the euro at NZ$1.8211.
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