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  • Dec 8th, 2012
  • Comments Off on Australian and New Zealand dollars hold hefty gains
The Australian and New Zealand dollars held hefty gains versus the euro and yen on Friday and were close to two-month peaks against their US counterpart, putting both currencies on track to end the week higher. Euro pauses against the Antipodeans following an offshore slide across the board. Last at A$1.2372, having slipped 1 pct to A$1.2341 on Thursday when the European Central Bank painted a bleak euro zone outlook and discussed cutting rates.

Euro a fair way off a one-month peak of A$1.2544 struck on Monday. Five- and 10-day MA pointing south suggest upward momentum losing steam. Key support found around A$1.2300, the 61.8 pct retracement of the November-December climb. Against the kiwi, euro at NZ$1.5588, after skidding 1.2 pct to a three-week low of NZ$1.5545. Euro on track to post a loss of 1.6 pct since Monday, its largest weekly decline in 5 months.

Aussie firm at $1.0477, from $1.0476 early, having been as far as $1.0515 overnight, its highest since September 21. It also scaled an eight-month high around 86.55 yen . Last at 86.45, showing a solid gain of 7 yen since October. Australian currency still buoyed by a surprising fall in the nation's jobless rate, suggesting slightly less urgency for further rate cuts after the central bank eased by 25bp this week.

Data out on Friday showed Australia's trade deficit at A$2 billion, roughly in line with forecasts. Traders cite bids ahead of $1.0450 with sellers ahead of an option barrier at $1.0525. Tech support seen at $1.0443, the 61.8 pct retracement of the Aussie's September-October sell-off. A break above long-term trendline of $1.0545 would be a bullish sign.

Copyright Reuters, 2012


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