The Australian and New Zealand dollars rallied more than one percent against the US dollar on Thursday, helped by talk China may allow its currency to rise faster and a bounce in some Asian stocks. Markets, though, remained subject to extreme volatility on concerns about the eurozone banking sector and the US economy.
In another wild trading session, the Aussie gained more than 1 percent to a high of $1.0285, having earlier shed a cent to a session low of $1.0110 after weaker-than-expected domestic jobs data. The Aussie was also underpinned by talk of buying from sovereign names buying the dip, according to traders.
The NZ dollar powered back up to $0.8222, after falling around three cents to $0.8070 offshore. The local currency was among the hardest hit when a wave of risk aversion encouraged heavy selling of commodity currencies on Wednesday. Like the Aussie, the kiwi reversed losses and was up nearly two percent from early levels. Resistance is seen around $0.8260 with support at $0.8065.
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