SYDNEY: The Australia and New Zealand dollars were headed for weekly gains on Friday, as signs of progress in both countries to rein in the pandemic raised hopes their economies were closer to reopening.
The Australian dollar advanced 0.2% to $0.7414 to hover near its Aug. 4 high. The currency was up 1.3% for the week and 4% on the last two weeks, its best performance since May last year. Resistance is now at the August top of $0.7426.
Likewise, the kiwi rose to a more than two-month high of $0.7130, popping above key resistance as New Zealand reported a sharp fall in COVID-19 cases. The currency was also set for weekly gains of 1.5%.
Sentiment improved as Australia’s Prime Minister Scott Morrison said economic reopening might be brought forward after securing a deal to double the stock of Pfizer doses, helping boost an already-ramped up vaccination rate.
At the current pace, around 80% of the adult population could be vaccinated by November, which would put the economy back on track by end of this year after a deep contraction was certain for the September quarter.
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