The Australian and New Zealand dollars held near multi-week peaks on Wednesday amid hopes the world economy was past the worst of the coronavirus shock, even if it might take many more months to fully recover.
The brighter mood showed in rising equity and commodity prices, along with a big surge in Australian bank stocks as investors piled back into the beaten-down sector.
All of which helped hoist the Aussie to $0.6645 <AUD=D3>, having jumped 1.7% on Tuesday to its highest since early March at $0.6675.
The break of resistance at $0.6616 was seen as bullish, as was a brief push above the 200-day moving average at $0.6657. A close above the March 9 top of $0.6685 could open the way for a return to at least the $0.6750/75 zone from February.
The same mood swing saw the New Zealand dollar up at $0.6189 <NZD=D3>, after climbing 1.6% on Tuesday to a 10-week top at $0.6228. It also cleared major resistance in the $0.6157/6176 area, opening the door for a push toward $0.6350.
As Australia loosens its lockdown, timely data are showing a pick up in everything from debit card spending to restaurant bookings and holiday enquiries.
Hayden Dimes, an economist at ANZ, noted internet searches showed the fear of and interest in COVID-19 had subsided.
"With regional travel in most states either allowed or soon to be allowed, people are thinking about travelling," said Dimes. "Searching for "Melbourne hotels" and "Sydney hotels" lifted quickly in recent weeks."
Mobility tracking showed more people venturing out, while internet searches for unemployment benefits had returned to pre-crisis levels.
That leaves the flow of official figures looking decidedly dated, with the latest numbers out on Wednesday covering construction work done in the three months to March.
Those showed a 1% drop in the quarter, slightly less than forecast, but will surely show a sharper decline this quarter as much of the economy shut down.
Likewise, the gross domestic product report for the first quarter due next week could well seem resilient on the surface even as this quarter is likely to show the largest contraction on record.
The second quarter data, however, is not due out until Sept. 2, when it could be of largely historical interest.
(Editing by Shri Navaratnam)
