The Australian and New Zealand dollars held near two-month highs against the pound on Tuesday ahead of a speech by Prime Minister Theresa May that could set Britain on course for a "hard Brexit". Sterling was on the defensive at A$1.6117, having touched a two-month trough below A$1.6000 in the previous session. It plunged 3.5 percent last week, the biggest fall since June last year.
May will say Britain will not seek a Brexit deal that leaves it "half in, half out" of the European Union, according to her office. Investors have been concerned that leaving the single market would hurt exports and foreign investment.
Against the New Zealand dollar, the pound ticked up to NZ$1.6952, after dropping 1.3 percent to a two-month low of NZ$1.6833 in the previous session.
Meanwhile, the antipodean currencies stayed near recent peaks versus their US counterpart. The Australian dollar stood at $0.7469, having repeatedly met stiff resistance above 75 cents.
The New Zealand dollar came off a one-month high of $0.7149 against the greenback to stand at $0.7102. New Zealand government bonds eased, sending yields 1 basis point higher.
Australian government bond futures were down too, with the three-year bond contract off 2 ticks at 97.99. The 10-year contract dipped 1 tick to 97.26.
The Aussie has benefited in recent weeks from rising iron ore prices, boosting the country's exports and national income, making it the best performing major currency so far this month.
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