Australia, NZ Dollars Resurgent on Virus Vaccine Hopes

SYDNEY, Nov 17 Reuters The Australian dollar climbed to a oneweek high on Tuesday, holding above key chart resistance of 73 U.S. cents, while its New Zealand peer was perched at a 19month top as investor sentiment was boosted by coronavirus vaccine hopes.

Risk assets were buoyed overnight by news that Modernas COVID19 vaccine recorded a 94.5 efficacy rate in preliminary numbers from a large latestage clinical trial.

The Australian dollar, a liquid proxy for risk, rose to 0.7319, a level last seen on Nov. 9. It was edging closer to a recent nineweek peak of 0.7340.

The New Zealand dollar was up at 0.6910. It was also within striking distance of a 0.6938 top from March 2019, a break of which would be bullish technically.

The Moderna news overnight is the second positive vaccine news following PfizerBioNTech results last week, NAB analysts wrote in a note.

Arguably, however, Modernas preliminary results are even better and provide a massive boost to the fight against the pandemic, they added.

These are all very encouraging news, meaning that by late Januaryearly February we could have vaccines being distributed to those in most need.

Earlier, the Reserve Bank of Australia RBA released minutes of its Nov. 3 policy meeting in which it said it was ready to provide yet more policy stimulus if needed.

The RBA had trimmed the cash rate to 0.1 and launched a A100 billion quantitative easing QE programme over six months.

Analysts said a recent virus outbreak in South…

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