SYDNEY: The Australian and New Zealand dollars saw a reprieve from selling pressure on Thursday after a pullback in Treasury yields restrained their US counterpart and sparked a much-needed rally in local bond markets.

The Aussie had crawled up to $0.6355, from an 11-month trough of $0.6286 hit on Tuesday, but was still down 1.6% for the week so far. Resistance lies around $0.6360 with major chart support at its 2022 low of $0.6170.

The kiwi dollar clambered to $0.5931 and away from a low of $0.5871, having just managed to dodge a break of this year’s trough at $0.5860.

Analysts, however, were cautious about calling a turning point for the currencies given US bond yields were only just off 16-year highs.