WELLINGTON/SYDNEY: The Australian dollar was on track for its largest monthly jump on record, while the New Zealand dollars rose to six-week highs on Friday, following an eye-watering rally overnight after Europe struck a deal to tackle its debt woes.
Aussie holding near 2-month highs at $1.0700 , after surging more than 3 pct on Thursday to a peak of $1.0753.
It is on course to post its biggest monthly jump ever at 10.9 pct, a dramatic reversal from Sept when it sunk 10 pct, its largest drop in 3 years.
Key resistance at $1.0765, the Sept 1 high. A break above opens the way up to the 29-yr high of $1.1081 struck on July 27. Support seen at $1.0650.
The NZ dollar at $0.8212, from $0.8210 in New York, following a 2.8 pct rally. It is on course to post its biggest monthly gain since May 2009, following a near 11 pct loss in September.
Kiwi up 8.2 pct so far in Oct, having peaked at a 30-year high of $0.8842 on Aug. 1.
Resistance found at the top of the daily ichimoku cloud at $0.8283, ahead of key barrier at $0.8318. Support at $0.8152.
Antipodeans supported by a surge in commodity prices with copper leading the charge with a 6 pct gain -- its third rally of 6 percent or more in the past five trading days. Zinc , nickel and lead all climbed more than 5 pct in the session.
The Aussie, often seen as a proxy for Asia, benefits from strong demand for emerging market currencies over the past 24 hours, according to traders. Funds are underweight those currencies after selling out in early October on concerns about another global credit crunch.
Australian dollar set to receive a double boost as Asian central banks intervene to prevent their currencies from rising. Traders reported early action from Singapore and Korean authorities. Moreover Asian banks need to diversify the fresh USD reserves into other currencies such as the Australian dollar.
Antipodeans hold on to large gains against euro, yen, and sterling.
Aussie softer at NZ$1.2976, off 4-1/2 month high of NZ$1.3125 hit earlier this week.
NZ government bond prices fall further as risk appetite improves, with local yields up to 17 bps higher.
Australian debt futures also under pressure, with the three-year contract 0.09 points lower at 96.020 and the 10-year down 0.075 points at 95.395.
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