SYDNEY/WELLINGTON: The Australian and New Zealand dollars edged up across the board on Wednesday, buoyed by upbeat housing data in both economies and improving commodity prices.
Aussie edges up to $1.0386, from $1.0367 early, on track to end the month flat. It has recovered from a trough of $1.0149 hit after the Reserve Bank of Australia (RBA) cut rates by a quarter-point to 3.25 pct earlier this month.
Kiwi a touch higher around $0.8220, from $0.8205 earlier, with charts pointing to support around Monday's low of $0.8187 and resistance at $0.8266. The kiwi looked set to post a 1 percent loss in October, though it is up from a trough of $0.8100 last week.
The Aussie gained a quarter of a cent after Australian approvals to build new homes jumped 7.8pc in September, far exceeding forecasts of a 1pc rise.
Private sector credit and building approvals data has become more important as the RBA looks for a recovery in the housing market to compensate for a peak in mining investments.
Australian interbank futures have widened the odds of further easing, factoring in less than a 50/50 chance of a quarter-point cut at next week's policy meeting. Swap pricing indicates 55 pct chance of a move against a two-in-three chance on Tuesday.
Key resistance for the Aussie seen at $1.0387, the 50 pct retracement of the Sept-Oct drop ahead of $1.0390-$1.0420 where large offers are sighted. Traders cite strong buying interest from Australian exporters from $1.0320.
Kiwi also underpinned by a sharp bounce in building approvals, which rose 7.8pc in September to a four-year high on rebuilding activity in Christchurch.
But rate outlook remains unchanged, with swap pricing still indicating an 18pc chance of a rate cut next month.
Antipodeans firmer against the yen, after the Bank of Japan eased policy as expected but failed to deliver the bold action the market was hoping for to kick-start growth.
Aussie back to 82.64 yen, having dipped to 81.91 on Tuesday trade after the BoJ outcome.
Kiwi also returns to 65.39 yen, from a trough of 64.93 on Tuesday.
Stronger equities across Asia, recovering copper prices from two-month lows and iron ore prices back to $120 per tonne helped risk sentiment.
Aussie government bond futures dipped, with the three-year contract down 0.03 points to 97.460.
The 10-year contract is a touch softer, off 0.01 points to 96.935.
NZ government bond prices also weaker, with yields up to 1.5 basis points higher along the curve.
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