The Aussie and New Zealand dollars edged higher on Wednesday after Australia reported solid economic growth in the third quarter, though gains were capped as investors remained focused on crucial developments in Europe later in the week. The Aussie jumped as high as $1.0278 after data showed the resource-rich economy grew a healthy 1 percent in Q3, before stabilising at $1.0266, from $1.0237 in New York.
The brisk growth came thanks to booming business investment and surprisingly upbeat household consumption. While the GDP report underlined how Australia was faring much better than its rich-nation peers, policy makers remain very much focused on the risks from Europe. Resistance for the Aussie, which has gained 6.3 percent since hitting a trough of $0.9664 on November 23, is found at the top of the daily Ichimoku cloud at $1.0274.
The kiwi marked time at $0.7798, vs late NY level of $0.7795, ahead of the Reserve Bank of New Zealand rate decision on Thursday. Support is seen around $0.7723, while resistance is pegged at $0.7840. NZ government bonds were little changed. The kiwi was aided by a second consecutive rise in dairy prices in the latest Fonterra auction, after recent declines.
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