The Australian dollar climbed to its highest in a week against the greenback and its New Zealand counterpart on Thursday after an unexpectedly strong jobs report prompted markets to trim bets of deep rate cuts. The Aussie dollar rose 0.8 percent to $1.0385, flirting with the ceiling of a downtrend channel drawn from the late-February peak and its 200-day moving average at $1.0382.
Against the yen, the Aussie briefly popped above 84.00, putting further distance from a two-month low around 82.50 plumbed just a day ago. On the kiwi dollar, it soared to a one-week high near NZ$1.2660 from a six-month trough of NZ$1.2515.
The dramatic turnaround came after Australian employment surged past all expectations in March, with the jobless rate staying at a low 5.2 percent, suggesting the economy was faring better than many had feared.
The New Zealand dollar followed the Aussie higher to $0.8222 from $0.8192, but quickly lost steam as traders stepped up buying of the Aussie against the kiwi. It last stood at $0.8200.
"Sentiment is pretty neutral for the kiwi," said Tim Kelleher, ASB Bank head of institutional FX sales. Traders expected the kiwi to remain in a range, with support at $0.8188 and resistance at $0.8240.