The Australian and the New Zealand dollars rallied sharply on Tuesday as the mood over Europe lightened just a little, though sentiment remains subject to wild swings as officials battle the region's debt problems. The Aussie rose to $0.9864, from $0.9716 in late New York trade, having gained more than two cents in 24 hours as investors cut back on short positions.
Still, the bounce remained modest given the currency's skid to a 10-month low of $0.9622 on Monday, after falling 5 percent last week alone. The Aussie went as high as $0.9884 after buying from real money investors triggered stops above $0.9870, but it faces strong resistance at the August low around $0.9924.
The New Zealand dollar touched a peak of $0.7823, before steadying to $0.7834, from $0.7780 in late New York trading. Like the Aussie, speculators were short of the currency having knocked 6 percent off its value last week. The Aussie edged lower against the kiwi at NZ$1.2595, after hitting a two-week peak of NZ$1.2672 on Monday. The Antipodeans held their ground against the yen, with the kiwi edging up to 59.68 yen, off a six-month low of 58.21 struck this week.
Comments
Comments are closed.