Aussie, kiwi range bound

The Australian and New Zealand dollars were stuck in familiar ranges on Tuesday, as uncertainty over the outlook for U.S. monetary policy again overshadowed strong economic news at home, Reuters reports.

The Aussie was a shade lower at US$0.7742, after topping out at US$0.7765 overnight. With last week’s break down to US$0.7646 having failed for bears, the currency was settling back into its well-worn range of US$0.7675 to US$0.7813.

The kiwi stood at US$0.7218, after meeting resistance at US$0.7242. It never broke the range of the past six weeks or so, but did get down as deep as US$0.7125 last week.

Both currencies had been in trouble before Friday’s benign U.S. payrolls report tempered talk of an early tapering by the Federal Reserve.

The next focus was U.S. consumer prices on Thursday where a high reading would likely lift the U.S. dollar.

Australian data on Tuesday extended the run of upbeat news with NAB’s closely-watched survey of business showing activity surging to record highs in May.

There was also promising news on the coronavirus lockdown in Victoria with Melbourne likely to see an easing in restrictions on Friday.

All of which only reinforced expectations the Reserve Bank of Australia (RBA) will take a first, albeit minor, step toward tapering at its July policy meeting.

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