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The New Zealand dollar scaled a 20-month high against the US dollar on Thursday, while holding near five-year peaks on the yen on expectations Japan's massive monetary stimulus would lift demand for higher-yielding assets. The kiwi led the currency pack, briefly topping $0.8600, a level last seen in August 2011, before edging back to $0.8590. It is now up a cent and a half for the week.
Having broken above $0.8575, the next hurdle higher was$0.8623, the late July 2001 high, while support is seen at Wednesday's peak of $0.8538. The Aussie fetched 104.64 yen, having risen as far as 105.26, its highest since late 2007. The kiwi rallied to 85.77 yen, its strongest since February 2008, and last bought 85.48. The Aussie has gained 7.5 percent since the BOJ announced its ambitious monetary easing plan last week and was seen testing its 2007 high around 107.85 yen.
The kiwi's next target lies around 88.10 yen, its 2008 peak. The Australian dollar eased off recent highs at $1.0510, from $1.0544 in early trade, after Australia's jobless rate rose unexpectedly to its highest in over three years in March. Traders cited solid resistance around $1.0600.

Copyright Reuters, 2013

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