SYDNEY: The Australian and New Zealand dollars steadied on Wednesday as upbeat economic news combined with rising bond yields to support the currencies in the face of broad US dollar gains.
The Aussie was holding at $0.7604, having recoiled from a peak of $0.7664 overnight. That left it uncomfortably close to the recent two-month trough of $0.7564 and a break could see a retreat to $0.7495/7500, or even the 200-day moving average at $0.7378. The kiwi stood at $0.6983, after falling from a top of $0.7033 on Tuesday. Support lies at the recent low of $0.6944 and the 200-day moving average at $0.6877.
Aiding sentiment was surveys from China showing surprisingly upbeat activity in both manufacturing and services, with the latter jumping to a very strong 56.3. China is Australia’s single biggest export market and a major driver of prices for its key commodity exports.