The Australian and New Zealand dollars were on track on Tuesday to post hefty gains this month, displaying remarkable resilience even as Greek debt talks dragged on and worries grew that Portugal could need more aid. The Aussie marched higher, buoyed by a combination of short-covering and stop loss triggers. It gained half a cent to $1.0637, distancing itself from an overnight low of $1.0526.
Risk sentiment improved in Asia after Greek Prime Minister Papademos raised hopes he would clinch another bailout deal by the end of the week. "Markets were looking for an excuse (to buy risk)," said Joseph Capurso, a strategist at Commonwealth Bank of Australia.
The Aussie and the kiwi dollars are among the best performers this year and struck three-months highs last week. The Aussie has gained 4.3 percent in January and charts point north. Support is found at the 10-day MA of $1.0547 then $1.0446, while resistance is seen at $1.0653 and the recent high of $1.0688. The New Zealand dollar gained 0.5 percent to $0.8235 and was in sight of the four-month high of $0.8250 touched on Friday.