SYDNEY: The Australian and New Zealand dollars stood near their 4-1/2 month highs on Friday, drawing partial support from Chinese data showing some improvement in the economy, while bonds retained their gains on monetary easing hopes abroad and at home.

The Aussie rose 0.4% to $0.6723, after jumping 0.6% overnight to $0.6728, its strongest level since July 31. It is headed for a weekly gain of 2.1% and next major resistance lies at $0.6820.

Chinese data on Friday showed the factory and retail sector sped up in November, but some indicators missed expectations.

The kiwi dollar was 0.2% higher at $0.6217, having risen 0.5% overnight. It is up 1.5% for the week, held back a little by expectations that the unexpected contraction in the economy will usher in aggressive rate cuts from its central bank next year.

Swaps are pricing in the Reserve Bank of New Zealand won’t have to follow up with its threat to hike any more but could deliver an almost 100 basis points of easing next year given the weakness in the economy.