SYDNEY: The Australian and New Zealand dollars cantered higher against major currencies on Monday, lifted by gains in Asian stocks and firmer demand for risk assets, though the mood remains fragile due to ongoing uncertainties in the U.S and Europe.
The Aussie dollar reaches a 4-week high of $1.0623, up from $1.0575 late in New York on Friday. It last trades at $1.0617.
Currency seen coming up against stiff resistance at $1.0620-40, with 55-day moving average around $1.0620 and base of daily ichimoku cloud at $1.0634. The 61.8 pct retrace of the $1.1081-$0.9927 decline is at $1.0640. Support seen at $1.0548, then $1.0500.
Aussie, up nearly two cents from Friday's low, is well-bid after local exporters stepped in when it briefly touched a session low of $1.0561, according to traders.
The NZ dollar climbs to a three-week high of $0.8433 from $0.8398 in New York on Friday.
Kiwi breaking out of $0.8150/$0.8415 range seen in much of the past month. Strong resistance seen at $0.8568, a retracement level, with support at $0.8369.
Move comes despite markets trimming risk of a rate rise. Market now implies 20 pct chance of September tightening, while pricing over the next 12 months steady around 49 bps.
Aussie firmer vs kiwi at NZ$1.2584 , well off a one-year trough of NZ$1.2305 struck earlier in the month.
Gains in stocks across the region underpinning Antipodeans. US S&P futures up 0.72 pct.
Risk assets were already in demand following a speech of Fed Chairman Ben Bernanke on Friday. Though there was no mention of QE3, markets expect more stimulus next month given uncertain growth outlook.
Antipodeans also up on euro and at multi-week highs against safe-haven yen and Swissy.
No major data due in NZ and Australia on Monday. Key data due later in the week includes capex and retail data in Australia and business confidence and terms of trade data in NZ. and
NZ government bonds firmer across the curve.
Australian bond futures ease, with the 3-year contract 0.05 points lower at 96.120 and the 10-year off 0.03 points at 95.575.
COPYRIGHT REUTERS, 2011
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