The Australian and New Zealand dollars climbed off multi-week lows against the greenback on Tuesday, lifted by a firmer euro and a rebound in Chinese stocks. The Aussie advanced to $1.0610 from $1.0584 in New York, pulling off a four-week low after short sellers were squeezed by demand from Asian central banks, traders said.
Earlier, the currency touched a session low of $1.0534 after minutes of the Reserve Bank of Australia's (RBA) May policy meeting did little to boost market expectations of an imminent rate hike. The New Zealand dollar clawed its way back to $0.7823, little changed from late New York levels. It had dipped to a one-month low of $0.7755 in Monday's offshore session as it broke through chart support at $0.7820 amid increased uncertainty over the global outlook.
Near term support for the kiwi is seen initially at $0.7755 and then just above $0.7700, while $0.7836 and then $0.7885 are seen as upside hurdles. The Aussie edged higher against the kiwi to NZ$1.3555 from NZ$1.3520 after the RBA minutes once again highlighted the divergent growth and interest rate outlooks for the two neighbours.
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