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Australia, NZ Dollars Test Resistance in Slow Motion Rally

SYDNEY, Dec 30 (Reuters) - The Australian and New Zealand dollars drifted higher on Thursday as more countries looked for ways to safeguard economic activity through the Omicron surge, while volumes were light with year end fast approaching.

The Aussie firmed to $0.7260 , having crept to its highest since mid-November overnight at $0.7272. A break of resistance at $0.7275 would open the way to a chart target at $0.7368, while support lies around $0.7196 and $0.7083.

The kiwi dollar was back up at $0.6844 , after surviving another brush with support around $0.6789 overnight. The bounce took it away from the recent 13-month low of $0.6702, but stiff resistance looms at $0.6867.

Both were helped by a recent sell off in the Japanese yen, which saw the Aussie reach a six-week peak of 83.49 and a long way from its early December low of 78.75.

Australia notched another record for coronavirus cases on Thursday and, like many other countries, is considering relaxing isolation rules to keep people working and the economy functioning. read more

A national cabinet meeting on Thursday was also expected to narrow the definition of close contact so that far fewer people would be forced to isolate in the first place.

Anecdotal reports suggest the service sector has been hit by consumer caution, but household spending and the labour market remain resilient overall.

The first official measure of employment for December is due on Jan. 20 and had been expected to show some consolidation after a record jump in jobs in November.

Editing by Sam Holmes

Source: Reuters

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