SYDNEY/WELLINGTON: The Australian and New Zealand dollars were firmer on Tuesday, as investor sentiment turned positive amidst renewed optimism that China will continue to underpin growth in the region.
The Aussie rose 0.3% against the greenback to $0.7705, loitering below the $0.78 resistance level at which it has traded the last three sessions.
The kiwi dollar was also higher at $0.7134, but remained under the $0.72 resistance level it set on Friday.
Both the kiwi and the Aussie, liquid proxies for risk, have been tracking commodity prices, analysts said.
Volumes were thin with little news flow and as markets paused due to a US holiday and ahead of president-elect Joe Biden’s Inauguration on Thursday.
New Zealand government bonds fell slightly, sending yields about half a basis point higher across the curve.
Three-year bond futures were half a basis point lower at 99.815, while yields on 10-year bonds were trading at 1.057%, having started the week at 1.031%.
Three-year cash yields were pinned at 0.12%, near the Reserve Bank of Australia’s (RBA) target rate of 0.1%.