AUD, NZD Rise for 5th Straight Day, Set for Strong Weekly Gains

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SYDNEY, June 25 Reuters The Australian and New Zealand dollars rose for a fifth consecutive session on Friday and were on track for solid weekly takings, as analysts predict further gains in the period ahead led by strong commodity prices and stillbuoyant risk appetite.

The Australian dollar was last up 0.1 at 0.7594 after hitting a near sixmonth trough of 0.7478 earlier this month.

For the week, the Aussie is so far up 1.5, its best weekly performance since earlyMay.

The Aussie, a liquid proxy for risk, reached 80 U.S. cents in February led by a global optimism about stronger global economic growth, successful vaccine rollouts in the United States and buoyant commodities prices.

But the gains have since fizzled out led by fresh waves of coronavirus in many countries and subsequent lockdowns, and as Australias central bank has reiterated its dovish stance, signalling policy rates will remain at a record low until 2024.

Still, analysts see further upside for the Aussie.

While market positioning and the poor technical picture generated by the downside range break have to be respected, the fundamental case for a stronger AUD remains intact, said currency strategists at National Australia Bank.

Risk sentiment as used in our models has deteriorated only slightly since earlyJune, while outside of a fallback in gold prices, commodity prices oil, industrial metals… still point to AUD higher.

We thus continue to forecast higher levels, 0.80 and above, as we go through…

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