The Australian and New Zealand dollars swung higher on Monday as upbeat data from top trade partner China countered concerns about a hard landing there, though investors remained wary in case of disappointment from European debt talks. Australian data also showed producer prices rose by less than expected last quarter, whetting appetites for the key consumer price report on Wednesday where a benign reading on inflation could open the door for a cut in interest rates.
The Aussie dollar stood at $1.0400 in late trade, having hit a peak of $1.0419 from $1.0331 in New York on Friday when it had already climbed a full cent. That left it near its highest in five weeks and within striking distance of major chart resistance at $1.0440. New Zealand's dollar rose to $0.8070, clearing the top of the month's range at $0.8068. But the Aussie perked up when HSBC reported its early index of manufacturing had risen to 51.1 in October.