SYDNEY: The Australian and New Zealand dollars clung to gains on Thursday after a tame reading on US inflation provided a reprieve to risk appetite, while data on local housing markets stunned with its strength.

The Aussie was holding at $0.7725, having survived multiple tests of support around $0.7620/25 this week. Resistance lies at $0.7745, followed by a gap to $0.7810.

The kiwi dollar edged to $0.7191 and away from the week’s trough at $0.7103, which now marks strong support. It faces resistance at $0.7200 and $0.7267. Their US counterpart was undermined by a soft reading on core US inflation which saw Treasury yields ease back and calmed jitters in risk assets. For Australia and New Zealand the prices that matter right now are for houses, and they are decidedly not soft. The dovish outlook helped three-year bond futures rally further to 99.770, and away from a 12-month trough of 99.615 hit late last month.