The Australian dollar rose near recent peaks against its US counterpart and the pound on Friday, as investors brushed aside a dovish economic outlook by the country's central bank. The Australian dollar popped to $0.7654, from $0.7630 early and was flirting with its highest level in three months. Resistance was found at $0.7663. Sterling slipped to A$1.7153, having dropped 2 percent on Thursday. A break under A$1.7032 would take it to its lowest since 2013.
Ten-year Australian bond paper pays 1.89 percent against 1.49 percent in the United States, 0.63 percent in the UK and -0.09 percent in Germany. Australian government bond futures rose at the long end, with the 10-year contract up 5.5 ticks at 98.0950, while the 20-year contract increased 7.5 ticks to 97.5650. The three-year bond contract was stuck at 98.600 as the yield curve flattened.
The New Zealand dollar firmed to $0.7196 as investors took a breath before US payrolls data due out later in the session and a policy decision by the Reserve Bank of New Zealand next week. The kiwi also performed well against the pound, soaring 1.84 percent to 0.5467 pounds after the BoE cut rates. The move was the largest daily rise since the Brexit vote on June 23. New Zealand government bonds gained, sending yields 1 basis point lower at the long end of the curve. Australian dollar was on track to end the week 0.7 percent higher despite the Reserve Bank of Australia (RBA) lowering its policy rate to a record low 1.5 percent on Tuesday.