Tue, Jan 05, 2021 – 12:32 PM
[SYDNEY] Australian and New Zealand dollars rose against the greenback on Tuesday, reversing the previous day’s loss as markets pledged a rapid economic recovery in 2021 once coronavirus vaccines are on the rise. widely distributed.
The Australian dollar was 42 basis points higher at US $ 0.7697 in thin trade measurements, after holding above US $ 0.77 over the last two sessions, a barrier that has not been cleared since April 2018.
The New Zealand dollar was 45 basis points higher at US $ 0.7204, also close to the December 31 year high of US $ 0.7241.
Both currencies had closed lower on Monday, as concerns about Covid-19 compliance and uncertainty over U.S. runoff elections in Georgia fueled demand for safer assets.
However, both the kiwi and the Aussie, melting agents for risk, have been driven by rising commodity prices and the success of their countries in introducing coronavirus pandemic, although revolution in Sydney threatens growth into new year.
“There is still a degree of uncertainty as we enter the year, a level of optimism but a level of uncertainty,” said CommSec economist Craig James.
Ms James said Australia’s widespread success in controlling the pandemic would support a rapid economic and market recovery and push the Australian dollar towards 78 US cents.
“We think as we enter 2021 the prospects are very optimistic (and) the Aussie dollar will be back in favor in a year that will be much more than growing, here in Australia and all over the world. “
New Zealand government bonds rose, yielding around 5 lower base points at the long end of the curve.
Australian government bond futures were slightly higher, with the three-year bond contract up half a second at 99.83. The 10-year contract was 4 tickets higher to 99.01.
REUTERS