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The Australian and New Zealand dollars flew to fresh four-year peaks on the yen on Monday as the Bank of Japan (BoJ) launched its ambitious stimulus drive in a hurry, boosting local bonds as investors anticipated a deluge of Japanese demand. The Aussie soared as far as 102.34 yen, the highest since July 2008. It has now risen five yen in just three sessions. Next stop is the 2008 top around 103.83.
The kiwi rose to 83.09 yen, a level not seen since mid-2008, the year when it went as high as 88.10. It has gained 4.5 percent since the BoJ announced its new easing plans last Thursday. The Antipodean currencies had mixed fortunes elsewhere. Both were softer against the US dollar with the Aussie limping along at $1.0370, having plumbed a three-week trough of $1.0348. Support was seen at $1.0348-50, the 50-day MA with buyers quoted at $1.0325-30. The kiwi dollar nudged lower to $0.8421, from $0.8432 in New York on Friday.

Copyright Reuters, 2013

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