The Australian and New Zealand dollars held handy gains against their UScounterpart and climbed on the yen on Wednesday, supported by broad weakness in the Japanese currency amid a revival in risk appetite.
The Aussie rose as far as 84.72, up two yen in less than 24 hours. It was last at 84.67, near key resistance around 84.80/90, the convergence of last week's high and the 38.2 percent of the March-April retracement and the 20-day MA.
A break higher would target the 61.8 percent retracement at 86.25 yen, while support is found at 84.00.
The surge followed heavy demand from margin players, particularly Japanese retail buyers, known as "Mrs Watanabes" in the market, keen on higher yields.
The kiwi rose 0.6 percent to 66.84 yen, well off a one-month trough of 65.49.
Against the US dollar, the Aussie held at $1.0395, having climbed as high as $1.0416. It had been as low as $1.0305 on Tuesday after minutes from the Reserve Bank of Australia confirmed it may consider cutting rates next month.
The New Zealand dollar last traded at $0.8219 little changed from its New York close, having benefited from the broad return of risk appetite.
"Falling prices for our commodity exports is the biggest downside risk currently facing the NZ dollar...last night's auction is certainly a fundamental negative for the currency," said BNZ currency strategist Mike Jones, adding there is a prospect of a significant cut in the payout to farmers.
Dairy produce makes up more than a quarter of New Zealand's NZ$46 billion export earnings.
Support for the kiwi is seen in the near term at $0.8180 and below that Tuesday's low of $0.8150, while resistance is around $0.8254, the 55-day moving average.
The Antipodean currencies could be poised for more gains if Spain's debt auction on Thursday draws enough demand to ease concerns in Europe.