The Australian and New Zealand dollars extended their already massive gains versus an embattled yen on Friday on growing expectations the Bank of Japan will step up its money-printing, putting the currencies on track to end the week sharply higher.
The Aussie fetched $1.0536, from $1.0527 early, having climbed a three-month high of $1.0585 this week. It was set to post a 0.5 percent rise for the week. Support was seen at $1.0487, a 10-DMA with major resistance at $1.0625, the high on September 14 and March 20. The New Zealand dollar was firm at $0.8434, from $0.8432 early, on track to post a hefty 1.3 percent increase this week.
It touched a nine-month high of $0.8461 on Thursday and raised the prospect it might make an assault on its all time high of $0.8840 set in July 2011. The local currency was underpinned after the Russian central bank said it has increased the share of Australian dollars in its forex reserves to 1.5 percent. The Antipodean currencies scored large gains on the yen as pressure grows the Bank of Japan will take bold action at its policy meeting next week to stimulate a struggling economy.
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