Markets Print edition: 2017-12-23

Aussie up, kiwi steadies

Published December 23, 2017 Updated December 23, 2017 12:00am

The Australian dollar climbed to a 1-1/2 month peak on Friday led by stronger prices for iron ore, the country's top export earner, while the New Zealand dollar stayed inside recent ranges. The Aussie, which has strengthened the past four days, was up another 0.2 percent to $0.7714. It was on track for a second weekly rise, being up 0.9 percent so far this week.
For the week, it is up 0.9 percent, on track for its second consecutive weekly rise. Against the Aussie, the euro slipped to as low as A$1.5339. edging closer to a recent one-month trough of A$1.5319.
The New Zealand dollar steadied at $0.7020 to stay within striking distance of a two-month high of $0.7034 set last week. The kiwi is up 0.4 percent so far this week, adding to last week's 2.3 percent rise. It is up 1 percent in 2017.
New Zealand government bonds were barely changed. Australian government bond futures eased, with the three-year bond contract down 2.5 ticks at 97.805. The 10-year contract slipped 3 ticks to 97.2750.
Trading was generally thin ahead of a long Christmas weekend. For the year, the Aussie has made a handsome 7 percent gain. Iron ore prices rose overnight, with the most traded May contract on the Dalian Commodity Exchange at 538 yuan ($81) a tonne, not far from a recent three-month peak of 555 yuan. The Aussie gained on the euro following Catalon vote results which indicated an unexpected victory for separatists in a blow to Madrid.