SYDNEY, Dec 17 Reuters The Australian and New Zealand dollars hit fresh multiyear peaks on Thursday as strong data underlined the outperformance of their domestic economies and the likely diminished need for yet more policy easing.
The Aussie was up at 0.7584, after stretching as far as 0.7591. That was the highest since June 2018 when it topped out at 0.7677, the next major chart target.
Australian employment again blew past forecasts with a rise of 90,000 in November, driving the jobless rate down to 6.8 when analysts had looked for 7.0.
The rapid recovery was welcomed by Treasurer Josh Frydenberg as he outlined a midyear fiscal review that nudged up forecasts for economic growth and trimmed the governments record 202021 budget deficit.
It will also please the Reserve Bank of Australia RBA, which declared dealing with unemployment a national priority when it cut rates to record lows in November.
Yet if unemployment continues to fall at this pace, the RBA might have to reconsider its commitment to not hike rates for three more years and to hold threeyear yields at 0.1.
At some stage in the future as the labour market continues to tighten the RBA Board will no longer continue to say that the cash rate is on hold for a further 3 years, said Gareth Aird, head of Australian economics at CBA.
They will need to either remove the yield target or lift the target. At this stage we think that could happen by the middle of 2021.
The kiwi dollar was also on a roll,…