SYDNEY: The Australian and New Zealand dollars basked near multi-month highs on Friday as hopes for truly potent Chinese stimulus boosted risk assets and commodities.

Just the chance of a revival in Chinese demand proved a saviour for iron ore, Australia’s single biggest export earner, lifting it above $100 a metric ton and away from lows of $88.40.

“The combined weight of the monetary and fiscal measures announced and mooted is highly likely to lead to the 5.0% growth target for 2024 being achieved and should also see a similar outcome in 2025,” said Westpac economist Illiana Jain.

“Success thereafter will be determined by how the private sector, particularly the consumer, responds.” The Aussie was little changed at $0.6889, having rallied 1.1% overnight to as high as $0.6904. Resistance lies at Wednesday’s 19-month top of $0.6908, followed by $0.6949.

It was aided by buying for carry trades against the yen , which saw it pierce the 100.00 yen barrier again for a weekly rise of 2.2%.

The kiwi dollar paused at $0.6326, after climbing 1% overnight and back toward the nine-month peak of $0.6355. The next stop is a top from last December at $0.6369.

Domestically, the Aussie was supported by a steady rate outlook from the Reserve Bank of Australia (RBA) this week, which has seen markets price in just a 20% chance of an easing at the next policy meeting in November.