Australian and New Zealand dollar advance

08 Feb, 2011

The Australian dollar advanced on Monday, as strong data on job ads helped offset subdued retail numbers, while the New Zealand dollar nudged up on broader US dollar softness. Surging commodities prices also helped the Aussie with copper soaring to a record high on Monday and iron ore, the nation's top export, holding near a record.
A choppy session saw the Aussie slip to a session low of $1.0103 in reaction to a below-forecast retail sales number, but it quickly bounced to $1.0135 as solid job ads illustrated the underlying strength in the economy. The slip in the currency followed a 0.2 percent rise in retail sales in December, below a forecast of 0.5 percent as consumers stayed cautious. Support for the Aussie is now seen around $1.0083 and resistance at its February 4 high of $1.0201. The New Zealand dollar inched higher to $0.7710 from an opening level around $0.7690.
However, the currency is still tarnished by dismal New Zealand jobs data last week which set back the prospect for a rate rise for months to come. The kiwi was steady against most other majors, sitting around NZ$1.7651 against the euro. The Aussie lowered to around NZ$1.3153, well off a month-high of NZ$1.3213 hit last week.

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