The Australian and New Zealand dollars scaled multi-month peaks against the yen and rallied on the US dollar on Wednesday after China reiterated its support to eurozone government debt, lifting risk sentiment. The Antipodean currencies had already been up on the yen after the Bank of Japan surprised on Tuesday by launching another round of quantitative easing, boosting stocks there.
The Australia dollar surged to 84.35 yen, its highest since August and clearing key resistance at 83.93. It is now up 7 percent so far this year. The kiwi jumped to 65.87 yen, its highest since September. It was last at 65.74, having gained a whopping 9 percent this year. The Aussie responded by rallying to $1.0731, from a two-week low of $1.0629 hit on Tuesday. It was still short of last week's six-month high of $1.0845, but a move above Tuesday's top of $1.0739 would suggest an end to corrective consolidation.