SYDNEY/WELLINGTON: The Australian and New Zealand dollars edged higher on Friday thanks to better US jobs data and a rally in commodity prices, while investors also expect the Bank of Japan to underline its commitment to radical easing later in the day.
The BOJ holds a policy meeting today and, while no new measures are likely given the aggressive steps already taken, analysts will want to see if the board is confident enough to forecast inflation reaching 2 pct in two years time.
Aussie, kiwi edge up against the yen, closing in on five-year highs hit earlier this month.
Aussie around $1.0293, having been as far as $1.0339 tracking gains in share markets after US data showed claims for unemployment benefits posted a big fall last week.
But the Aussie's rally stops short of $1.0350 resistance, as offers were suspected above that level.
The kiwi around $0.8500, after rising as far as $0.8563, its highest in nearly two weeks. Next test for the kiwi will be the NZ monthly trade data where a surplus of around NZ$373 mln is expected. Support at $0.8450.
Sentiment supported by a bounce in commodities with base metals helped by talk of restocking in China. The CRB index added 1.5 pct while gold and oil gained.
Market participants say initial Aussie, kiwi gains were also driven by selling in the US dollar against the euro , which climbed to around $1.3080.
However, the euro's inability to push up to $1.31 prompted a buyback in the greenback.
Both Aussie and kiwi slide versus sterling , which rallies after a modest 0.3 pct rise in GDP meant the country narrowly avoided a "triple dip" recession. Aussie hits a two-month low around A$1.5010 as a result.
Some in the market say that the Aussie may face selling pressure if it fails to make a serious attempt at $1.0400 soon, Strong technical support seen at $1.0220, where a trendline drawn from lows hit in June and March rests.
Kiwi continues to claw back after it was knocked from a 20-month high of $0.8676 earlier this month. Analysts say its upward trend intact, citing strong support around $0.8450. Near-term resistance seen around $0.8560, as offers suspected above that level.
Australian government bonds mixed, with the three-year contract indicated down 0.020 points at 97.360, while the 10-year contract inches up 0.005 points to 96.825.
New Zealand government bonds slip, prodding yields 2 basis points higher across the curve.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>
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