Aussie and Kiwi Dollars Surge as Greenback Falters

The Australian and New Zealand dollars have reached multi-week highs as the greenback weakens. The Aussie is up at US$0.7111, having risen 0.3% overnight to reach a 10-week top at US$0.7129. This break of resistance has some analysts predicting a push to US$0.7200 and the May peak of US$0.7277.

Tim Baker, a macro strategist at Deutsche Bank, notes that recent US economic data has missed forecasts, while other developed nations have seen improved news.

Baker says this is 'denting the US growth exceptionalism picture' and suggests the dollar tends to lag when growth is solid elsewhere in the world.