SYDNEY: The Australian and New Zealand dollars extended their rapid rally on Wednesday as relatively high local yields drew buyers, and New Zealand’s central bank sounded upbeat on the local economy even as it signalled rates would stay low.
The Aussie climbed to $0.7945, its highest since February 2018 and a rise of two cents in just four sessions. The next chart barriers are $0.7988 and $0.8000, ahead of a peak from January 2018 at $0.8136.
The kiwi dollar reached $0.7378, levels not seen since April 2018 and a gain of 1.5 cents in four days. Its next targets are $0.7395 and $0.7437.
Yields on NZ 10-year bonds were last at 1.715%, just off that peak, and remained far above the 1.01% held at the start of this year.
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