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Australia, NZ dlrs near 1-mth peak as Trump stays mum on fiscal plans

Published 12/01/2017, 01:05 pm
Updated 12/01/2017, 01:10 pm
© Reuters.  Australia, NZ dlrs near 1-mth peak as Trump stays mum on fiscal plans
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By Swati Pandey and Charlotte Greenfield

SYDNEY/WELLINGTON, Jan 12 (Reuters) - The Australian and New Zealand dollars stood near one-month highs on Thursday as the greenback skidded after President-elect Donald Trump failed to elaborate on his economic policy agenda at a much awaited news conference.

The Australian dollar AUD=D4 was at $0.7445, having rallied almost 1 percent overnight to as far as $0.7471. That was the largest single day rise since Sept.6 and its highest reading since Dec. 14.

"The AUD continues to be the best G10 performer year-to- date, benefiting from USD weakness," said Rodrigo Catril, currency strategist at National Australia Bank, referring to a group of ten developed countries.

"For markets, the lack of detail on Trump's stimulus plan along with ... reaffirmation of his intention to build a wall along the Mexican border triggered some volatile moves across asset classes."

Trump's first news conference since the Nov. 8 election contained no details on tax cuts and infrastructure spending, two factors that had fuelled the five-week rally in stocks and a selloff in global bond markets. instead took aim at targets that included pharmaceutical companies and U.S. intelligence agencies. Trump accused the intelligence agencies of practices reminiscent of Nazi Germany after leaks led to some U.S. media outlets to report unsubstantiated claims that Russia possessed compromising information about him.

Elsewhere, the Aussie held at a two-month peak against the pound GBPAUD= , while the euro languished near a one-month trough after losing 0.7 percent overnight EURAUD= .

The Aussie was also at a more than six-week high against its New Zealand counterpart AUDNZD=R .

The New Zealand dollar NZD=D4 stood at $0.7054, after hitting the highest since Dec. 15 at $0.7088.

While offshore events dominated moves in the Kiwi, traders will watch out for New Zealand's electronic retail card spending data due Friday to confirm the recent trend of strong domestic demand and household consumption. ECONNZ

New Zealand government bonds 0#NZTSY= gained, sending yields 1 basis points lower along most of the curve.

Australian government bond futures rose, with the three-year bond contract YTTc1 up 2 ticks at 98.02. The 10-year contract YTCc1 rose 4.5 ticks to 97.28. (Editing by Simon Cameron-Moore)

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