AUD, NZD Find some Support from Upbeat Economic News


SYDNEY, March 31 Reuters The Australian and New Zealand dollars steadied on Wednesday as upbeat economic news combined with rising bond yields to support the currencies in the face of broad U.S. dollar gains.

The Aussie was holding at 0.7604, having recoiled from a peak of 0.7664 overnight. That left it uncomfortably close to the recent twomonth trough of 0.7564 and a break could see a retreat to 0.74957500, or even the 200day moving average at 0.7378.

The kiwi stood at 0.6983, after falling from a top of 0.7033 on Tuesday. Support lies at the recent low of 0.6944 and the 200day moving average at 0.6877.

Aiding sentiment was surveys from China showing surprisingly upbeat activity in both manufacturing and services, with the latter jumping to a very strong 56.3.

China is Australias single biggest export market and a major driver of prices for its key commodity exports.

Australian data also showed a huge 21.6 increase in approvals to build new homes in February, far above forecasts of 5.0 and recouping all of Januarys unexpected drop.

Approvals to build new houses surged 15.1 to a record high as government grants and rapidly rising prices flowed through to more construction, supporting jobs and consumption.

With the economy outperforming, government finances are also in far better shape than feared just a few months ago.

Analysts at CBA estimate the 202021 budget deficit could turn out at A145 billion 110.32 billion, a massive improvement of A55 billion on…

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