SYDNEY, April 7 Reuters The Australian and New Zealand dollars were breaking higher on Wednesday as signs of an accelerating global economy underpinned currencies leveraged to trade flows and commodity prices.
The Aussie pushed to a twoweek top of 0.7675, having finally cleared resistance at 0.7668. The break opens the way to 0.7745 and a return to where it was trading before a sharp drop in midMarch.
The kiwi dollar reached 0.7063 and was challenging resistance at 0.7070. The next major barrier is 0.7100, and a breach could see it fill a gap up to 0.7165.
A string of strong March manufacturing surveys from across the globe had shown rising demand, widespread supply shortages and higher prices for goods as economies learned to live with coronavirus curbs.
The International Monetary Fund raised its forecast on Tuesday for global growth this year to 6, a rate unseen since the 1970s, while also lifting its outlook for Australia.
Chinese steel prices hit a record high amid strong demand and constrained supply, in turn supporting prices for iron ore, Australias biggest export earner.
In New Zealand, ANZ reported its commodity index surged to an alltime peak in March on the back of a sharp rise in dairy prices.
AUDUSD remains slightly undervalued relative to commodity prices in our view, said analysts at CBA. We expect AUD to lift closer to its fair value of 0.8300.
Bonds were also faring well as U.S. Treasury yields came off their recent highs and the Reserve Bank…