The Australian and New Zealand dollars inched higher in thin trade on Friday as more U.S. and European data pointed to signs of an improving economy, auguring well for global growth and commodity prices.
The Australian Dollar has opened lower this morning following a fall in Chinese Industrial Profits yesterday, which was the first drop in profits since 2009.
* Aussie dollar at $0.9906, having been as high as $0.9914, but remains short of the one-month peak of $1.0030 set earlier in the week. Aussie has support at $0.9828, while resistance remains around $0.9964 level.
* Data overnight showed an unexpected increase in the Philly Fed manufacturing index, which pointed to the chance of a strong ISM report, along with an upbeat German PMI.
* Commodities eased somewhat but that comes after a run of gains. CRB index dipped 0.5 pct having again failed to clear resistance around 320.80.
* Improving outlook for global growth keeping Aussie strong on the crosses. The euro is near a record low around A$1.3365, while sterling is near a 25-year trough at A$1.5768.
* The NZ dollar recoups losses to trade around $0.7410 from an early low of $0.7387, helped by higher euro.
* But kiwi still seen vulnerable on the downside after breaking below $0.7400 level and markets looking for reasons to unload the currency heading into the year end amid a slew of weak data.
* Support seen at $0.7340, a 61.8 percent retracement of $0.6947 to $0.7976, while resistance around $0.7492, a low on Dec. 14.
* Kiwi continues to underperform the Aussie, with the Aussie/kiwi pair hitting fresh decade high of NZ$1.3436 before steadying around NZ$1.3363.
* Kiwi under pressure after recent sub-par data, including weaker consumer and business confidence surveys on Thursday, reaffirms expectations of no NZ rate hike before the middle of next year.
* No domestic data due on Friday and little major in the region either. Markets looking to more NZ data next week. Analysts polled by Reuters expect current account deficit widening to 3.4 percent in Q3 from 3.0 pct in Q2 and GDP growth of around 0.2 percent.
* NZ government bond yields flat, while bank bills mixed.
* Australian bond futures higher, with the three-year contract up 0.04 points at 94.710 and the 10-year rising 0.065 points to 94.365.
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