SYDNEY: The Australian and New Zealand dollars were both near their highest since 2018 on Thursday as investors wagered the imminent arrival of coronavirus vaccines would help spur a global economic recovery in coming months. The Aussie stood at $0.7411 having finally cracked the September top of $0.7413 to touch $0.7420, a level not seen since August 2018. The next major targets are $0.7500 and $0.7677, a peak from June 2018.
The kiwi dollar paused at $0.7057, after reaching its highest since April 2018 at $0.7084. There is not a lot of chart resistance now until $0.7150. The improving global outlook has been a drag on sovereign bonds, with Australian 10-year yields climbing to a three-month top at 1.02% before steadying at 0.999%. Buying by the Reserve Bank of Australia (RBA) has contained three-year yields at 0.13%, near the central bank's 0.1% target, thus steepening the yield curve.
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