The Australian and New Zealand dollars rose against most of their major counterparts as Asian stocks gained, boosting demand for riskier assets.
Australia’s bonds fell, boosting the benchmark 10-year yield to the highest level in more than two weeks, after data showed the nation’s business confidence for December rebounded by the most in more than a decade. The so-called kiwi dollar snapped a three-day drop against the greenback after New Zealand’s annual trade deficit unexpectedly narrowed.
“The bond yields in Australia and New Zealand jumped quite a bit,” said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia (CBA), the nation’s largest lender. “The global environment of higher bond yields, as well as a rise in equity markets, is providing some support to the Aussie and kiwi.”