The Australian and New Zealand dollars extended a week-long rally on Tuesday as optimism for progress on Sino-US trade talks and the Brexit standoff squeeze short positions and pushed bond yields higher.[SYDNEY] The Australian and New Zealand dollars extended a week-long rally on Tuesday as optimism for progress on Sino-US trade talks and the Brexit standoff squeeze short positions and pushed bond yields higher.
The kiwi dollar was in much the same position having climbed to the highest in more than five weeks at US$0.6435 and nearing the September top of US$0.6450. On Brexit, investors are wagering Prime Minister Boris Johnson's repeated failures to get his deal through Parliament mean there is less of a risk of a hard exit.
Three-year bond futures eased 1.5 ticks to 99.210, and further away from the recent record peak of 99.420.