SYDNEY/WELLINGTON: The Australian and New Zealand dollars pushed higher against the greenback and the euro on Wednesday as upbeat US data bolstered the outlook for global growth while Cyprus' bailout scheme hung heavy over the euro zone.
Aussie around $1.0485 early, not far from a two-month high of $1.0497 struck overnight. Momentum still positive, with $1.0500 the next target and supports at $1.0408, a 100-DMA.
NZ dollar follows, rising to a one-month high of $0.8394 before steadying around $0.8390. Kiwi still seen between $0.8308, a 100-DMA, and $0.8392, a 61.8 pct retracement level.
Kiwi sentiment positive after Fonterra increased its payout forecast to farmers as expected on the back of rising dairy prices in recent auctions. But it also pointed to worsening dry conditions.
Aussie also back up on the yen at 99.00 amid reports the Bank of Japan will likely adopt a new bond buying target, perhaps as soon as next week.
Wall Street up, with benchmark S&P 500 index extending to just below its all-time closing high set in Oct 2007, after US housing and manufacturing data add to evidence of an improving economy.
Euro struggles near a four-month low vs the US dollar, with sentiment hurt by Cyprus' bailout scheme that could set a precedent for other troubled euro zone economies.
That also weighs on the single currency against the Antipodeans. Euro sinks to A$1.2258, after touching the lowest since November last year at A$1.2225.
Against the kiwi, the euro slid to a seven-month low of NZ$1.5306, having shed two cents in as many days.
NZ expects a monthly business confidence survey on Wednesday, while The Reserve Bank of Australia (RBA) releases its semi annual review of the financial state of the banking and household sectors.
Australian government bonds higher as the Cyprus mess underlines the relative safety of the triple-A debt. The three-year contract indicated 0.030 points up at 96.990, and the 10-year contract gaining 0.035 points at 96.440.
NZ government bonds also firmer in early trade, yields down one basis point across the curve.
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