SYDNEY, April 26 Reuters The Australian and New Zealand currencies rose against the U.S. dollar on Monday, underpinned by higher iron ore prices and a weaker greenback amid speculation the U.S. Federal Reserve will shun talk of tapering bond purchases at its policy meeting.

The commoditysensitive Australian dollar was up 0.34 at 0.7774, as iron ore soared more than 4, fuelled by structural supply shortage and robust steel demand.

The Aussie faces resistance at 0.7816 and has support at 0.7730.

The huge jump in iron ore prices in the face of record Chinese demand and the ongoing constrained supply remains a super potent positive for the Australian dollar, Westpac analysts said, noting the expectation of volatile trading within the wider 0.76 to 0.80 area.

The kiwi dollar climbed 0.39 to 0.7216, having posted gains for the past two weeks and on track to be 3.3 ahead this month and reverse its losses in March almost fully.

We remain of the broad view that the postvaccine rebound in the U.S. should be good for global growth and Asia, and thus cyclical currencies and commodities, and that speaks to further upside risks to the NZD, but were watching bond yields closely, said analysts from ANZ Banking Group.

The dollar index edged down ahead of the Feds next policy meeting that ends on Wednesday.

Fed Chairman Jerome Powell is likely to face questions over whether an improving labour market and rising coronavirus vaccinations warrant a withdrawal of monetary easing,…