The New Zealand dollar held near a fresh 30-year high while the Aussie hovered close to a two-month peak, as investors piled into risk after European leaders finally made progress in dealing with Greece’s debt problems.
The Kiwi hit a record high against the Dollar on Thursday, peaking at 0.8642. In Asia, NZDUSD scaled a new top of 0.8638 before profit-taking nudged it down to 0.8582.
Aussie, from having surged to a two-month peak of 1.0856 in New York yesterday, settled in a range and hovered near that high overnight in Asia supported by broad-based selling of the U.S. dollar.
Aussie gained around 10 pips following a set of strong Australian trade numbers. Export prices, up sharply by 6 % in Q2 mainly due to higher iron ore and coal prices, and far outstrip import prices up 0.8%, consequently further boosting the country’s terms of trade.
Import prices were pushed up by a big rise in petrol which adds some upside risk to key consumer inflation figures due next week.
Markets also had to scale back expectations of a dovish Reserve Bank of Australia (RBA) after the EU deal. Until now, the view was that the RBA would be forced to cut rates because of a major blow-up in Europe.