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Australia, NZ dlrs Resume Climb on Upbeat Economic Data

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SYDNEY, Dec 1 Reuters The Australian and New Zealand dollars were edging higher again on Tuesday, shaking off a bout of profittaking as domestic economic news stayed upbeat and global commodity prices strong.

The Aussie firmed 0.3 to 0.7366, having reached a threemonth peak of 0.7408 overnight only to meet stiff resistance at the September top of 0.7413. A break there would take it back to levels not seen since mid2018.

The kiwi dollar pushed back up to 0.7037, having already reached its highest since June 2018 at 0.7051. The currency surged 6 in November and overbought technical signals point to the need for some consolidation.

Australian economic data were again upbeat with a revival in house prices and home building boding well for economic recovery now the nation is largely coronavirusfree.

The Reserve Bank of Australia RBA noted the run of better news while leaving rates at 0.1 after its December policy meeting on Tuesday.

Having eased policy in November, analysts assume it will be on hold for at least a few months to see how growth fares.

The lesson globally has been that activity bounces back sharply once virus control is achieved and containment restrictions are eased, NAB economist Tapas Strickland said.

Encouraging news on vaccine trials suggests the mediumterm outlook for growth will also continue to improve.

Australias relative economic success has kept 10year bond yields up at 0.92, while U.S. yields have drifted down to 0.85, widening the Aussies…

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