FXstreet.com (Barcelona) - A short term replica of the bullish fervor that infused both the Australian and New Zealand Dollar into perpendicular impuslive rallies between mid April's and early May is currently present in the FX market. After looking both pretty heavy over the past few weeks, AUD and NZD are back on track like real champs.

As reported by the Sydney Morning Herald: "Fast growth in China and India has bolstered demand for the Aussie dollar, the world’s fifth-most traded currency, which advanced 27 per cent in the past year and reached $US1.1012 on May 2, the highest since it was freely floated in 1983", also commenting that part of the move north is on "hopes that Greece may be able to avoid a default on its debts."

The positive flows entering AUD and NZD, according to Sean Lee, Editor at Forexlive, are due to the end of financial year in Australia: "There is talk of some significant AUD and NZD demand not only against the USD but also against the CHF, JPY, GBP, EUR and CAD. Based on the overnight movements, it looks like the demand is quite substantial and probably needs to be filled before the London fix later tonight."

The Australian Dollar has been picking up upside momentum, gaining more than 4 cents this week alone. AUD/USD bounced from a 2 ½ month low at 1.0390 to currently just break into new higher ground. Once resistance at 1.0715 was cleared in the last hour of trading, the pair soared to 1.0740. The Aussie also hit its highest against the Pound since early 1985.

Even more surprising is the strength behind the Kiwi. After falling off a cliff to 0.7120 by mid April on the disastrous earthquake in Christchurch, the NZD/USD stood, three months later, triumphant at 0.8300, fresh multi-decade highs. A couple of retreats back over the past 3 weeks set a base at 0.8000, and now we having the pair back again breaking into new highs at 0.8317, impressive indeed.