Aussie, kiwi gain

The Australian and New Zealand dollars edged higher on Tuesday as speculation about a slower pace of rate hikes from the Federal Reserve dragged on their US counterpart. Local bond markets rallied hard in tandem with US Treasuries, driving Australian 10-year bond yields to their lowest in three months at 2.54 percent.
The Aussie inched ahead to $0.7368 and back toward Monday's four-month peak at $0.7394. Dealers reported stiff resistance above $0.7380 which was proving tough to break. The New Zealand dollar hit a fresh six-month high of $0.6960 as it continued to gain from the hopes of a lull in a growing trade war between the country's key trading partners, the United States and China. New Zealand government bonds gained, sending yields 5 basis points lower at the long end of the curve.