The New Zealand and Australian dollars rose against a broadly weaker greenback on Friday, underpinned by firmer stocks and commodities, with the kiwi soaring to a fresh 3-year high. The New Zealand dollar surged to a fresh peak of $0.8200, before steadying at around $0.8180, having gained more than one percent on the day for the second straight session.
Earlier it had fallen as low as $0.8070 on market talk of a sovereign ratings downgrade. But markets quickly bounced back after realising the downgrade was likely to be about New Zealand's banks following Moody's February 17 review for possible downgrade. Moody's confirmed on Friday the outcome of the review was due "soon".
The Australian dollar also climbed to a two-week high of $1.0720, almost a cent higher than in New York, before steadying at around $1.0700. It has gained 0.6 percent on the day and 0.5 percent this week, having struck a 29-year peak of $1.1012 on May 2. Aussie support is seen at $1.0570, with resistance at $1.0609, ahead of a strong barrier at $1.0716.
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