The Australian dollar took a breather on Tuesday after striking a fresh 29-year high overnight, as its recent rapid run left it overbought in the short term and facing strong chart resistance against the yen. The Australian dollar consolidated at around $1.0256, after hitting a peak of $1.0315 offshore on Monday.
The currency has benefited from considerable momentum, having gained nearly 6 cents in just 11 days, but lost some steam due to weaker metal prices and profit-taking, according to a trader. In New Zealand, the kiwi firmed at around $0.7514 in late trade. It also made a fast recovery, up four cents since its nosedive in the wake of Japan's massive earthquake mid-March. Support remained strong at the March 11 high of $0.7457 while resistance was at $0.7583 ahead of $0.7607.
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