WELLINGTON/SYDNEY: The Australian dollar rose to a near two-week high versus the greenback on Tuesday, and outperformed its New Zealand peer, after minutes of the Reserve Bank of Australia's July meeting suggested it was in no hurry to cut interest rates.
Aussie last at $1.0293, having risen as high as $1.0304 after the RBA minutes revealed policymakers saw "no need" to cut interest rates this month.
Resistance now seen at the July peak of $1.0330, with support around $1.0210/20.
Interbank futures come under a bit of pressure as markets pare back expectations for an August cut. Markets implying a less than 50/50 chance now, down from as high as 60 percent last week.
Aussie holds near a record high on the euro, which buys A$1.1941, after hitting A$1.1917 overnight. Against the yen, it fetches 81.20, not far the overnight high of 81.32.
Aussie outperforms the kiwi, rising 0.3 pct on the day to NZ$1.2868 and closing in on a one-month high of NZ$1.2903 set last week.
New Zealand dollar trades around $0.7989, slightly higher on the day. It initially slipped after local data showed inflation for the June quarter at its slowest in more than 12 years.
Data reinforce views the Reserve Bank of New Zealand has plenty of scope to keep rates at a record low well into next year.
Focus now on Fed chief Bernanke's semi-annual testimony to Congress amid speculation he could take a further step toward fresh quantitative easing. Should he disappoint and just repeat that Fed will take further easing measures if necessary, that could see risk assets and the Aussie pull back.
New Zealand government bonds rise, pushing yields as much as 3 basis points lower.
Australian debt futures softer, with the three-year contract down 0.03 points at 97.760, while the 10-year contract is 0.015 points lower at 97.175.
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