WELLINGTON/SYDNEY: The Australian and New Zealand dollars were enjoying the view around multi-month highs on Monday while bonds took a beating, as risk assets ranging from commodities to stocks rallied in the wake of a better US jobs report.
The Australian dollar firm at $1.0561, from $1.0474 late on Friday locally, having touched a four-month high of $1.0581 last week.
A strong start in Asian stocks, with Hong Kong and Korea jumping 2 percent, underpin Antipodean currencies.
Short-term support seen around $1.0500, ahead of $1.0480, with resistance around $1.0580.
The New Zealand dollar at $0.8181, having climbed to three-month highs of $0.8199 on Friday.
Kiwi topside seen capped in the near term, with offers seen above $0.8200, which also serves as a trendline resistance level drawn from highs hit in June and July. More resistance seen at $0.8235, a high hit in late April.
A private gauge of Australian inflation rose only modestly in July even as the introduction of a controversial carbon tax sharply lifted utility costs, with price pressures elsewhere very subdued.
The TD Securities-Melbourne Institute's measure of consumer prices edged up 0.2 pct July, from June. The annual pace of inflation actually slowed to a three-year low of 1.5 pct, well below the Reserve Bank of Australia's (RBA) long-term target band of 2 to 3 pct.
The benign outcome gives plenty of room for more rate cuts if needed, though the central bank has said it is currently content with policy after cuts in June and May.
The RBA holds its monthly policy meeting on Tuesday and is widely expected to keep rates at 3.5 pct following cuts in May and June.
Interbank futures imply only a one-in-ten chance of a cut to 3.25 pct this week, but is fully priced for a 25bp easing in October.
Australian job ads in newspapers and on the internet dipped 0.8 pct in July, a fourth straight month of losses that point to some softening in labour demand, a private survey showed on Monday.
The official jobs report for July is due on Thursday. Economists expect a rise of 10,000 with unemployment rate ticking up to 5.3 percent, having been between 4.9 and 5.3 pct for well over a year.
The single currency posts modest gains helped by short-covering, having reached all-time lows last week. Last trades at A$1.1736, nearly a cent higher from Friday. Against the kiwi at NZ$1.5144 from NZ$1.4958.
New Zealand government bonds fall sharply as the US data quells safe haven demand, sending yields as much as 10 basis points higher.
Australian government bonds skid to their lowest since May. The three-year contract eases 0.15 points to 97.300, while the 10-year contract falls 0.12 points to 96.860.
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