AUD, NZD Aided by Strong Global Data as RBA Sounds Upbeat


SYDNEY, April 6 Reuters The Australian and New Zealand dollars found support on Tuesday from more evidence of strong economic growth in China and the United States, and as Australias central bank sounded upbeat on the domestic outlook.

The Aussie held at 0.7640 and well above last weeks threemonth low of 0.7533. Bulls need to crack resistance at 0.7664 to keep the rally going, while the major target for bears is the 200day moving average down at 0.7396.

The kiwi dollar stood at 0.7050 and off its recent fourmonth trough at 0.6944. Resistance lies around 0.70957100 ahead of 0.713550, which is where the currency was trading before a sharp retreat in midMarch.

Sentiment was helped by surveys of service sector activity from China and the U.S, which easily beat forecasts.

There was also good news on the hardhit tourist sector with Australia and New Zealand agreeing on a travel bubble. 

Wrapping up its April Board meeting, the Reserve Bank of Australia RBA kept rates at 0.1, as expected, and again emphasised that no hike was likely until 2024 at the earliest.

It was also optimistic on the outlook, noting the economy had recovered far faster than expected with employment reaching prepandemic levels in February.

Figures out Tuesday showed labour demand remained strong with job advertisements jumping to a 12year high in March.

The RBA sounded a little more concerned about surging house prices, cautioning banks that it did not want to see a loosening in lending standards….

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