Australia, NZ dlrs Resume Climb on Economic Optimism

SYDNEY, Jan 21 Reuters The Australian and New Zealand dollars resumed their upward march on Thursday as domestic data spoke of continued economic recovery, while markets globally looked ahead to more stimulus in the United States under President Joe Biden.

The Aussie climbed to 0.7770, leaving behind a low of 0.7659 hit at the start of the week. Resistance is now lined up at 0.7805 and the recent 212year top of 0.7819.

The kiwi dollar reached 0.7195 having bounced from a 0.7097 trough touched on Monday. It faces chart resistance at 0.7200 and 0.7240, ahead of a January high of 0.7314.

Australian data showed 50,000 net new jobs were added in December. The economy has now recovered more than 90 of the losses suffered during the coronavirus lockdowns last year.

The jobless rate dropped to a sevenmonth low of 6.6, though that remains well above the prepandemic level of 5.2.

The speed of the recovery in jobs has led some to wonder if the Reserve Bank of Australia RBA will end its A100 billion bond buying program in April, though most assume it will continue if only to stop the Aussie surging even higher.

That outlook has helped hold 10year bond yields back at 1.04 and off a recent sevenmonth top of 1.118.

New Zealand yields had also eased back to 1.03, from a recent peak of 1.13, though markets have still greatly scaled back the chance of any further policy easing given the surprising strength of the domestic economy.

Westpac on Thursday ditched its call for two more…

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