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SYDNEY: The Australian and New Zealand dollars held firm on Tuesday as both countries' relative success in combating Covid-19 supported local sentiment in the face of a darkening global outlook. The Aussie was up 0.1% at $0.7131, comfortably above its recent low of $0.7018 and not far from the next major resistance barrier at $0.7158.
The kiwi dollar was a shade firmer at $0.6683, again well above last week's trough of $0.6551 and nearer resistance at $0.6704. Most analysts assume the bank will cut the cash rate to 0.1%, from the current 0.25%, and lower its target for three-year bond yields to the same level. Three-year bond futures already largely price that in at 99.840, implying a yield of 0.16%.