The Australian dollar hovered near six-week highs as the country's central bank sounded upbeat about future economic growth, while the New Zealand currency held near a one-month peak. The Australian dollar was last at $0.7633, down 0.2 percent on the day and within striking distance of Monday's $0.7665, a level not seen since April 23.
The New Zealand dollar was barely changed at $0.7029, a touch below the one-month peak of $0.7048 hit overnight. Earlier, the Reserve Bank of Australia (RBA) held interest rates at 1.50 percent for a 22nd straight meeting, citing lukewarm inflation and wage growth. However, it said the country's gross domestic product (GDP) growth was expected to accelerate to "a bit above" 3 percent in 2018 and 2019.
The upbeat outlook came as analysts upgraded forecasts for first-quarter GDP, due Wednesday, following a run of better-than-expected data this week. New Zealand government bonds eased, sending yields 8 basis points higher towards the long end of the curve.
Australian government bond futures were mixed, with the three-year bond contract up 1 tick at 97.805. The 10-year contract was flat at 97.265.
Australia's A$1.8 trillion economy is expected to have expanded a brisk 0.9 percent in the March quarter from 0.4 percent in December, according to a consensus of 19 economists polled by Reuters.
The annual pace likely accelerated to a healthy 2.8 percent, from 2.4 percent in December.
Before this week's data, economists had expected growth of 0.8 percent for the quarter and 2.7 percent for the year.
However, there was caution around reading too much into the quarterly numbers. "While recent data does point to an acceleration in March quarter GDP growth, there have been numerous growth spikes in Australia to around 1 percent, quarter on quarter, in recent years only to be followed by a cooling again," said Shane Oliver, chief economist at AMP.
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