The Australian and New Zealand dollars opened the week broadly flat on Monday, after retreating in the previous session from their multi-week rally that had been driven by hopes for a vaccine-fuelled global recovery next year.
The Australian dollar, a liquid proxy for risk, was trading five basis points higher at $0.7429, off the two-year peak of $0.7449 it reached on Dec. 3.
The New Zealand dollar was three basis points lower at $0.7038. That was below the $0.7104 multi-year top it reached on the same date, as investors took some profits off the table, analysts said.
Both currencies have rallied in recent weeks as investors chose to focus on the future prospects of a COVID-19 vaccine and the ensuing global rally in risk assets, rather than the worldwide resurgence in infections.
In Australia, job advertisements jumped for a seventh straight month in November as the second-most populous state of Victoria emerged out of its long coronavirus-induced lockdown.
Its U.S. counterpart was slightly weaker on Monday after soft U.S. jobs data solidified expectations of a fresh economic package, supporting the antipodean currencies.
"As long as U.S. monetary policy remains focused on actual inflation and employment outcomes rather than forecasts, U.S. dollar weakness is likely to persist. This is just one factor that will contribute to Asian currencies appreciating further," said Australia and New Zealand Group Chief Economist Richard Yetsenga in a note.
Australian yields were higher with the 10-year last at 1.040%, compared with 1.00% on Friday. New Zealand government bonds fell slightly, sending yields about four-and-a-half basis points higher at the long-end of the curve. Australian government bond futures slipped, with the three-year bond contract down half a tick at 99.810. The 10-year contract eased 4 ticks to 99.965.
(Editing by Jacqueline Wong)
