The Australian and New Zealand dollars rose anew on the yen helped by Japanese retail buying, while the US dollar was weighed by the looming risk of a US government shutdown. The Australian dollar lunged to a fresh 29-year peak at $1.0535, and could even tackle $1.1000 thanks to the massive momentum built up in the past three weeks.
The Aussie also stretched its legs to 89.61 yen, a level not seen since September 2008. It was briefly knocked back to 88.06 overnight after a new quake rocked Japan, but it rapidly rebounded as it became clear the quake did little new damage. Traders said the correction served to squeeze out weak longs and set the stage for a sustained run above 90.00.
The New Zealand dollar also climbed to 66.57 yen, inches away from this week's 11-month high of 66.72. The Aussie rally also dragged the kiwi up, breaking a two-month high of $0.7835 while flirting with a November 2010 summit of $0.7837, defying a grim domestic picture. As the kiwi underperforms its neighbour, the Aussie recovers to NZ$1.3456 from a near two-month low of NZ$1.3335 on Thursday. The pair struck a 19-year high of NZ$1.3794 on March 7.
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