WELLINGTON/SYDNEY: The Australian and New Zealand dollars powered to multi-week highs on Thursday after Greece's parliament approved the first of two austerity measures to avert a default, fuelling a relief rally in equities and commodities.
The Aussie rises 1.3 pct to a two-week high of $1.0686 early, from $1.0580 in late local trade on Wednesday. It remains well bid and last around $1.0679.
Aussie was well off an 11-week low around $1.0390 set on Monday and has minor resistance around $1.0700.
NZ dollar also rallies to a near three-week high of $0.8265 from $0.8130, before steadying around $0.8253, not far from the 26-year peak of $0.8301 struck earlier this month.
After breaking out of the top cap at $0.8200, the kiwi is heading for the next level of resistance at $0.8260.
Outperforming kiwi pushed the Aussie/kiwi pair to an offshore low of NZ$1.2900, before recouping to NZ$1.2943.
Global stocks rose for the third straight day and oil prices jumped after the positive outcome in Greece. The CRB index climbed 1.3 pc.
Euro up against the US dollar on upbeat risk markets, with US agro group Monsanto posting strong earnings and US pending home sales rising.
Aussie also climbs to a two week high on the yen, while the kiwi hit a four week high.
House price and credit data due in Australia, while NZ expects building and business confidence surveys on Thursday.
NZ bond yields track a sharp rise in US Treasury yields, with local yields up around 4 bps.
Sentiment toward the US dollar was not helped by a sudden fall-off in foreign demand for Treasuries at auctions this week, which have seen 10-year yields jump 27 bps in three sessions.
That reversal badly wrong footed bulls in Aussie bonds who had pushed yields down to eight-month lows early in the week. Yields on the 10-year bond have since surged 24 bps to 5.24 pct.
Bond futures likewise hit with the three-year down 0.08 points at 95.200 and the 10-year contract 0.045 points lower at 94.760.
Investors have also had to step back on bets the Reserve Bank of Australia (RBA) might be forced to cut interest rates. December interbank futures are down at 95.35 from a peak of 95.50 at the start of the week.
Copyright Reuters, 2011
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