The Australian dollar advanced on Thursday as figures showing a very strong outlook for business investment augured well for economic growth in coming years, keeping upward pressure on interest rates. In contrast, the New Zealand dollar was still weighed down by the devastating earthquake this week that has seen investors give up on any thought of rate hikes this year.
The Australian dollar gained three quarter of a cent to $1.0084, before steading at around $1.0065. Near-term support seen around $1.0013, with resistance at $1.0095. The Aussie was also buoyed by local exporters, model funds as well as retail investors buying via electronic trading platforms, according to traders.
The NZ dollar firmed at $0.7484, having hit a two-month low of $0.7460 on Wednesday. Still, the kiwi remains under pressure as analysts suspect the economy is probably in a technical recession. Market pricing indicates an 88 percent chance of a rate cut in March and no tightening over the next 12 months. The divergence with the Australian outlook kept the Aussie up near a two-month peak at NZ$1.3462.
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