By Swati Pandey
SYDNEY/WELLINGTON, Oct 30 (Reuters) - The Australian and New Zealand dollars jumped on Tuesday as investors picked up risky assets although analysts warned any rally is likely to be short-lived amid simmering global trade tensions.
The antipodean currencies hit one-week highs on the safe-haven yen AUDJPY=R NZDJPY=R while Asian equities were also bid up with Japan's Nikkei's index .N225 the top performer, up nearly 2 percent. U.S. stock futures EMc1 1YMc1 pushed higher in Asian afternoon trading.
The Australian dollar AUD=D4 was last at $0.7086, up 0.5 percent. It went as high as $0.70955, which might have been driven by hopes of a U.S.-China trade resolution ahead of a meeting of the two leaders next month.
The New Zealand dollar NZD=D4 added 0.4 percent to $0.6546, clocking its second straight day of gains.
Earlier, Bloomberg reported that U.S President Donald Trump had predicted a "great" deal with China in an interview on Fox News' Laura Ingraham Show.
Trump said while he would want to make a deal "right now" he did not think China was ready yet, Bloomberg reported.
"His remarks were quite ambiguous but markets latched on to it," said Kyle Rodda, Melbourne-based analyst at IG Markets.
"There's not much substance in his comments but for whatever reason markets have fired on the back of it, specially risk assets."
Analysts do not expect the gains to hold though.
"I expect the whole move to reverse later in the day," said Nick Twidale, Sydney-based analyst at Rakuten Securities Australia.
"I think this is a false rally. The next couple of months are going to be very crucial for global financial markets. We have the U.S. mid-term elections and we have the U.S.-China meeting in December. They are key risk events."
Indeed, investors had every reason to be cautious.
The world's two biggest economies have been locked in a bitter trade war for months now, hitting asset markets from stocks to commodities to currencies. Wall Street was roiled overnight after Bloomberg reported, citing sources, the United States was preparing to announce tariffs on all remaining Chinese imports by early December if talks between Trump and his Chinese counterpart failed next month. confirmed the report on Fox.
He has already imposed tariffs on $250 billion worth of Chinese goods, and China has responded with retaliatory duties on $110 billion worth of U.S. goods. Previous rounds of U.S. tariffs have taken at least two months to impose once a list of products was announced, allowing for public comments to be aired. (Editing by Shri Navaratnam)