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  • Dec 13th, 2012
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The Australian and New Zealand dollars stretched to multi-month highs on the greenback and yen on Wednesday on expectations of further stimulus in the United States and Japan. The kiwi dollar rallied to 69.38 yen, its highest since October 2009, underpinned by a return of carry trades.

The kiwi has surged 16 percent versus the yen and 8 percent versus the dollar so far this year, on the view that New Zealand's economy is faring better than other countries. The Aussie scaled an 8-1/2 month peak of 87.03 yen and looked on target to test 88.62, this year's high touched in March.

It has gained more than 10 percent against the Japanese currency this year. Against the US dollar, the Antipodean currencies rallied to multi-month peaks, buoyed by stronger equities across Asia. The Aussie rose to $1.0541, its best in nearly three-months, from $1.0479 in late local trade on Tuesday. The kiwi climbed to $0.8398, a top not seen since early March, having broken key resistance in the mid-$0.8300 region. Traders said this opened the door to a test of the year's high of $0.8471.

Copyright Reuters, 2012


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