SYDNEY/WELLINGTON: The Australian and New Zealand dollars were again challenging chart resistance on Wednesday as their US counterpart waned and domestic data extended their recent habit of surprising on the upside.
The Aussie firmed to $0.7740, having bounced from strong support in the $0.7660/70 area overnight. It still faces resistance layered from $0.7785 to $0.7805 and $0.7820.
The kiwi dollar had rallied to $0.7230 and away from support at $0.7170. Resistance lies at $0.7240/50 and the recent peak of $0.7314.
So far, 10-year yields have moved up to 1.05% in line with US yields to keep the spread around zero, but that would change should the RBA show any hint of reconsidering the program.
“It needs to clear $0.7240 to signal the upward trend is continuing, with $0.7325 an initial multi-week target,” said Westpac’s head of NZ market strategy, Imre Speizer.
“We retain a bullish medium-term outlook for NZD/USD, targeting 0.7500 by April,” Speizer said.