The Australian dollar powered to a fresh 29-year peak against the greenback on Thursday and hit 2.5 year highs on the yen as surprisingly strong employment data revived the case for an interest rate hike. Already on a tear thanks to a global rush into carry trades funded in yen, the Aussie rose as high as $1.0489 and 89.45 yen in the wake of data showing employment jumped by 37,800 in March, far exceeding a forecast 22,000 increase.
The jobless rate dropped under 5 percent, lows typically associated with growing inflationary pressures, adding to speculation the Reserve Bank of Australia will resume its gradual tightening later this year. Against the yen, it last traded at 89.07 yen, with markets eyeing a possible test of 90 and even 100 yen in the near term, traders said.
Against the New Zealand dollar, the Aussie rose to NZ$1.3484 from six-week lows around NZ$1.3335 plumbed a day earlier. The strong Australian jobs numbers weighed on the kiwi pushing it to its session lows. Kiwi settled around $0.7760 after it had touched a two-month high of $0.7809 overnight.
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