Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Australia, NZ dlrs extend rally, near major resistance

Published 22/10/2019, 01:00 pm
© Reuters.  Australia, NZ dlrs extend rally, near major resistance
AUD/USD
-
NZD/USD
-
AU10YT=RR
-
NZ10YT=RR
-
FSF
-
FCG
-

By Wayne Cole

SYDNEY, Oct 22 (Reuters) - The Australian and New Zealand dollars extended a week-long rally on Tuesday as optimism for progress on Sino-U.S. trade talks and the Brexit standoff squeeze short positions and pushed bond yields higher.

The Aussie dollar AUD=D3 reached a five-week top of $0.6883, though bulls need to break major resistance at the September peak of $0.6895 to build on the run.

The kiwi dollar NZD=D3 was in much the same position having climbed to the highest in more than five weeks at $0.6435 and nearing the September top of $0.6450.

"Positive mood music on U.S.-China trade developments is keeping the risk fires burning, the S&P 500 closing back above 3,000 for the first time since September 19th and bond yields higher across the globe," said Ray Attrill, head of FX strategy at NAB.

China and the United States have achieved some progress in their trade talks, Vice Foreign Minister Le Yucheng said on Tuesday, adding that as long as both sides respected each other, no problem could not be resolved. President Donald Trump also sounded upbeat on a China deal on Monday, while White House adviser Larry Kudlow said tariffs on Chinese goods scheduled for December could be withdrawn if talks go well. Brexit, investors are wagering Prime Minister Boris Johnson's repeated failures to get his deal through Parliament mean there is less of a risk of a hard exit. of which has seen safe-haven bonds cede some of the year's huge gains. Yields on Australian 10-year paper AU10YT=RR were up at 1.18%, after being as low as 0.87% just eight sessions ago.

Three-year bond futures YTTc1 eased 1.5 ticks to 99.210, and further away from the recent record peak of 99.420.

Yields on New Zealand 10-year bonds NZ10YT=RR rose to 1.35%, a long way from the recent trough of 1.01%.

There were no economic data out, but dairy exporter Fonterra FCG.NZ FSF.NZ lifted the 2019-2020 guidance range for the price it pays farmers for milk, saying it has managed to achieve firm prices so far this year. company estimated the increase would add NZ$450 million to New Zealand's economy. (Editing by Shri Navaratnam)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.