The Australian and New Zealand dollars traded near their strongest levels in two weeks as speculation euro-area finance ministers will unlock bailout funds for Greece boosted demand for higher-yielding assets.
The South Pacific currencies, the so-called Aussie and kiwi, were supported as Asian shares rose after U.S. stocks had the biggest weekly rally in in five months amid the holiday shopping season. Gains in Australia’s dollar were tempered as some economists and investors forecast the Reserve Bank will lower borrowing costs at a gathering next month.
“The meeting might be a little bit supportive for Aussie and kiwi if something positive comes out,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia (CBA), the nation’s biggest lender, referring to talks in Europe. “The good news is already in there. I think they might see a little bit of upside, but not a great deal.”
via Bloomberg
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