The Australian and New Zealand dollars hovered near seven-week peaks against the euro on Thursday and held gains on the US dollar as risk appetite improved. The market is awaiting the re-opening the Chinese markets after a holiday. The Australian dollar stood at $0.7201, having popped back above 72 cents for the first time since mid-September. Resistance is found at a double top near $0.7280. It has bounced 2 percent higher this week, largely due to a growing perception the Reserve Bank of Australia (RBA) may not ease again this year.
The euro was nursing hefty losses against the Antipodean currencies as investors pared back their well-established euro long trades. The common currency skidded to its lowest since late August at A$1.5507 to be last at A$1.5622. Versus the New Zealand dollar, it dropped to NZ$1.7000 , having skidded 1.3 percent on Wednesday. Against its US counterpart, the New Zealand dollar held at $0.6605, having gained more than 1 percent on Wednesday when it peaked at $0.6647.
Global dairy prices leapt 10 percent at an auction held this week by giant co-operative Fonterra. The kiwi dollar is sensitive to the prices of milk products, the country's top export. Resistance was found at $0.6710. New Zealand government bonds eased, sending yields as much as 6.5 basis points higher at the long end of the curve. Australian government bond futures fell deeper in the red, with the three-year bond contract off 3 ticks at 98.150. The 10-year contract slipped 4.5 ticks to 97.2950, leading to a bearish flattening of the curve.
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