SYDNEY/WELLINGTON: The Australian and New Zealand dollars climbed against the US dollar, Swiss franc and yen on Monday, as calmer markets lifted fragile sentiment and prompted a cautious return to growth-sensitive assets.
The Aussie up three quarters of a cent to $1.0425, from New York on Friday, having troughed below parity just last week.
Stops above $1.0420 with talk of selling interest at $1.0450/70. Major resistance seen at $1.0465, ahead of another barrier at $1.0525. Support seen from $1.0340.
The NZ dollar up to $0.8375 against its New York close of $0.8320 and around a cent above late local levels on Friday. Support for the kiwi seen from $0.8255 and resistance first at $0.8380 ahead of a renewed move above $0.8400.
Antipodeans, which were already on the rebound following a horrendous week of market turbulence, extended gains on buoyant regional stocks. Australian and Hong Kong shares were up nearly 2 pct and S&P futures edged higher.
Aussie and kiwi around 1 percent higher against a generally weaker Swiss franc on persistent talk of pegging the safe-haven currency to the euro .
Aussie at a 10-day high of 0.8208 francs, while kiwi climbs to 0.6600 francs.
Antipodeans outperform yen and pound as risk sentiment improves, while holding steady against the euro.
The Aussie-kiwi cross also steady at NZ$1.2442, not far from last week's one-year low of NZ$1.2302.
US credit downgrade and ongoing euro zone debt concerns still likely to keep markets on edge, as Italy called for a more coordinated response to prevent the debt crisis spreading.
Car sales in Australia boasted their biggest rise in over a decade in July as supply from Japan finally began to return to normal after months of disruption from the March earthquake there.
New Zealand's services sector activity largely steady in July, although employment sub-index falls into contraction and recent market volatility expected to have an impact in next survey. See
NZ government debt prices fall, sending yields 3 basis points higher along the curve.
Australian bond futures ease, with the 3 year contract down 0.09 points to 96.13 and the 10-year off 0.052 points to 95.520.
The steadier markets also sees interbank futures pare some expectations on emergency rate cuts, though a cut of 25 basis points is still priced in for September.
On Tuesday, the Reserve Bank of Australia (RBA) releases minutes of its August policy meeting where it considered actually tightening policy but deferred in the face of acute uncertainty in global markets.
Copyright Reuters, 2011
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