AUD, NZD Return to Range Prison after Breakout Fails

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SYDNEY, June 8 Reuters 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.

The Aussie was a shade lower at 0.7742, after topping out at 0.7765 overnight. With last weeks break down to 0.7646 having failed for bears, the currency was settling back into its wellworn range of 0.7675 to 0.7813.

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

Both currencies had been in trouble before Fridays 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 NABs closelywatched 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.

Most analysts suspect the central bank will not roll over its current yield target of April 2024 to November 2024, but will announce another round of bond buying, perhaps with a weekly amount or some…

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