The New Zealand dollar cantered to a 26-year peak against a broadly weaker greenback on Tuesday, helped by rising business confidence, while the Australian dollar held close to a three-week high, underpinned by a bouncy euro and weak yen. The kiwi dollar powered to $0.8264, from $0.8167 in early trade, before steadying around $0.8238 after breaking through key barriers earlier this week.
The kiwi took off late last week on market chatter China was considering increasing its exposure to New Zealand assets while the euro's big gains and bouncing confidence numbers at home gave the currency a further boost on Tuesday. The kiwi has gained more than one percent in the session, or around five percent so far this year, and it is the second consecutive day the currency has touched a 26-year peak. For now, initial support for the high-flying currency was seen at an intra-session low of $0.8154 and below that $0.8120. The currency is in uncharted territory, but major resistance was seen at around $0.8270 and then psychological $0.8300.
The fiery kiwi sent the Aussie to four-month lows at around NZ$1.2975, dropping around 0.8 percent on the day. The pair hit at one-month high of NZ$1.3701 on May 4. Against the greenback, the Aussie rose to $1.0702 from $1.0687 in early trade, dragged up by a stronger euro, following a report that Germany could make concessions on efforts to put together a bailout for Greece.
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