Kiwi on fire, spiking to a one-month peak of $0.8529, from $0.8460 in New York, with some stop-loss buying triggered above $0.8510. It last traded around $0.8522.

Major resistance at $0.8576, the Aug 3 low with support at $0.8365.

Kiwi underpinned by a 13 pct jump in NZ home building approvals, adding to evidence of an improving domestic economy.

Australian home building approvals lag far behind with just a 1 pct rise in July, versus the median forecast for a 2 pct increase

Aussie lost almost a cent on the kiwi to trade at NZ$1.2515 .

Kiwi had already been boosted overnight following a risk asset rally on encouraging US data and European news that seemed to have soothed recession fears for now.

Market pricing still sitting around 20 pct for a 25 bps hike from the RBNZ next month, and 52 bps of tightening over the next 12 months

Kiwi also gains on the crosses, holding around a four-week high of NZ$1.7021 on the euro. It is hovering around a three week high of 65.51 yen and up 1 pct on the Swissy at 0.6975 francs .

It also outperforms the Aussie at NZ$1.2515 .

Australian dollar hovers around four-week highs at $0.0672, from $1.0655 in New York, having climbed as high as $1.0686 earlier in the session.

Traders say the Aussie could be heading higher with resistance found at the base of the ascending ichimoku cloud at $1.0680 with the top of the cloud not far behind at $1.0722. Support seen at the 100-day MA at $1.0646 with solid hourly support at $1.0605/10.

Aussie holds onto multi-week gains on yen and Swissy. Euro has eased 6 cents to A$1.3603 in 3 weeks when the single currency struck a five-month peak.

Australian bond futures also lower, with the 3-year contract off 0.03 points off at 96.100 and the 10-year down 0.03 points at 95.555.

Copyright Reuters, 2011