Australia, NZ dollars firm as French fallout pressures euro

Business Recorder reported that the Australian and New Zealand dollars were steady on Tuesday, aided by gains on European currencies after riots in France. The Aussie was near $0.6977 after a 0.5% overnight gain, well above a 15-week trough of $0.68945. Traders are also awaiting domestic interest rate signals.

The kiwi dollar stood at $0.5665 after a 0.1% overnight rise, with its 17-month low of $0.5566 acting as major support. Resistance is seen at $0.5675 and $0.5750. Attention turns to RBA Deputy Governor Andrew Hauser, who speaks on Wednesday and will likely field questions on a possible fifth rate hike this year.

Analysts see a risk that core inflation rises 1.0% this quarter, keeping annual inflation at 3.6%, above the RBA's 2% to 3% target band, while Westpac expects a 0.9% quarterly gain. Consumer price figures arrive on October 28, the same day Governor Michele Bullock and her team face lawmakers. Markets imply about a one-in-three chance of a November hike to the 4.60% cash rate, climbing to 56% for December. Across the Tasman, the Reserve Bank of New Zealand also announces its decision that day, with investors pricing an 89% chance of a quarter-point rise to 3.0%.