The Australian and New Zealand dollars ground higher on Monday, extending their recovery from recent lows as a sharp bounce in gold and bank interest-rate reforms in China underpinned demand. The Aussie nudged up to $0.9214 from $0.9174 on Friday in Sydney, to be sitting well above a three-year trough of $0.8998 plumbed earlier this month.
It was helped by a 1 percent jump in precious metals including gold, which reached a one-month peak. The New Zealand dollar was quoted at $0.7930, recovering from an early slide to a session low of $0.7891 in reaction to a strong earthquake in Wellington on Sunday. Rising prices of iron ore, Australia's top export earner, lent further support. The bulk commodity topped $130 a tonne for the first time since May.
The Antipodean currencies were also buoyed by news of more market-oriented reforms in the banking sector of China, a key export market. Near-term support for the kiwi was seen at $0.7910 and then $0.7890, with Friday's high of $.7990 seen capping gains. NZ government bond prices were flat.
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