[SYDNEY] The Australian dollar stood near two-year highs on Monday while its New Zealand counterpart was within kissing distance of an almost 11-month peak against an unloved greenback.
The Australian dollar was up 0.1 per cent at US$0.7919, not far from Thursday’s peak of US$0.7992 – a level last seen in May 2015. Key chart support lies at Friday’s low of US$0.7875.
It climbed 1.1 per cent last week, adding to gains of nearly 3 percent the previous week.
The Aussie had looked set to breach stiff chart resistance of 80 US cents last week, but the Reserve Bank of Australia (RBA) on Friday poured cold water on hawks who were wagering on a rate increase over the near term.
Deputy Governor Guy Debelle gave the clearest signal yet that policy rates were set to remain at record lows of 1.50 per cent for a while.
“RBA’s Debelle burst the AUD bulls’ balloon on Friday,” said Stephen Innes, head of APAC trading at OANDA. “We could see a further washout of the short-term long AUD positioning. But with a sagging greenback, it’s best to express any Aussie negative bias through the crosses.”