SYDNEY/WELLINGTON: The Australian dollar conserved its energy on Tuesday after repeatedly failing to break resistance above 93 cents, while the New Zealand dollar's relatively high interest rates helped it climb for a third straight session.
The Aussie was firm at $0.9282, within sight of a 4-1/2-month peak of $0.9310 touched last week.
The 93 cent barrier has proved a major obstacle to bulls, who have failed four times to sustain a break. Still, the Aussie managed to hit its highest in more than four months against a basket of currencies at 71.4.
Against the yen, the Aussie eased to 95.40, having run out of steam at a 10-month peak of 96.52 hit last week. A break below 95.25 would target the 38.2 percent retracement of the 91.00-96.52 rally at 94.40.
"It gained 500 points in the space of two weeks to find reasonable support around 96 yen," said a trader at a European bank in Singapore.
"The momentum started to turn over and is still negative," he added, seeing potential for the Aussie to retrace another full yen. The Bank of Japan's latest policy review produced no new measures, though Governor Haruhiko Kuroda is bound to field questions on further stimulus at a news conference at 0630 GMT.
At home, a private survey showed a measure of Australian business conditions improving modestly in March with the mining and services sectors faring best.
The next flash point will be on Thursday with employment figures for March. Median forecasts are for a modest rise of 5,000 following a surprisingly large 47,300 increase in February.
The jobless rate is seen staying at 6.0 percent.
The New Zealand dollar added 0.3 percent to $0.8630, having climbed from a low of $0.8511 in just three sessions. Against a currency basket, it was at 80.40, not far from a post-float high around 81.03 scaled earlier this month.
Another strong New Zealand business sentiment reading on Tuesday helped to bolster the kiwi. It gained on the Aussie to NZ$1.0770, up from a seven-week trough around NZ$1.0860 touched last week.
The kiwi has climbed nearly 7 percent versus the US dollar since February on expectations that its rate advantage will only get larger.
The Reserve Bank of New Zealand began raising interest rates last month to stem inflation risks as the economy continues to grow strongly.
Markets are pricing in a 96 percent chance that the RBNZ will raise its official rate to 3.0 percent later this month, while 118 basis points' worth of tightening is priced in for the next 12 months.
New Zealand government bonds were a touch softer, with the yield on 2021 bonds up 1.5 basis points.
Other maturities were little changed. Australian government bond futures were a touch firmer, with the three-year bond contract steady at 96.960.
The 10-year contract rose 2 ticks to 95.925, having touched a two-month low last week.
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