AUD, NZD near 10Week Highs on Softer USD, Strong Iron Ore

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SYDNEY, May 10 Reuters The Australian and New Zealand dollars climbed on Monday to be near 10week highs against their U.S. counterpart as a disappointing jobs report pressured the greenback and as strong commodity prices aided risk appetite.

The Australian dollar rose 0.1 to 0.7854 after surpassing critical chart resistance of 0.7815 on Friday.

It went as high as 0.7863, a level not seen since lateFebruary, helped by solid Australian retail sales data and a strong business conditions survey.

The currency is facing stiff resistance at 0.7865, a breach of which would take it as high as 0.7885 while chart support lies in the 0.781520 region.

The Aussie jumped 1.7 last week, marking its best weekly performance since November.

AUDUSD can remain elevated this week because commodity prices show little sign of peaking, said CBAs currency strategist Kim Mundy.

Iron ore prices surged to fresh cyclical highs last week because a lift in AustraliaChina tensions sparked supply concerns, Mundy added.

Nevertheless, as long as Chinas demand for Australias iron ore remains intact, which we expect, AUD can continue to lift.

Iron ore is Australias No.1 export earner with China its top buyer.

The main highlight in Australia this week is the Australian Budget on Tuesday due around 0930 GMT which is likely to show a greatly improved fiscal position on the back of a strongerthanexpected economic recovery and high iron ore prices.

Across the Tasman Sea, the New Zealand dollar held at…

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