(Action Economics) - 18-Apr-12 06:02 -AUD-USDmaintained a firm tone around 1.0400 following yesterday's rebound from 1.0305 to 1.0418 highs.

Good AUD-JPY demand was a feature of the session after stocks posted healthy gains, which lifted the cross from 84.00 to 84.70.

Other positive developments, included a decent iron ore production report from BHP, which was up 14% y/y.

The IMF also gave a glowing endorsement of Australia's economy in yesterday's economic report and said it will be one of the strongest amongst developed nations for at least the next two-years, with 3% growth expected this year.

Meanwhile, the Westpac leading index for February rose 0.2% m/m from 0.3% previously, which was a three-month low, but it did not impact price action.

Elsewhere, Australian Treasurer Swan entered the RBA rate cut debate after he said that his budget surplus plans give it plenty of room to cut rates.NZD-USDtraded within narrow ranges above 0.8200.

It remained just short of weekly highs around 0.8235-40 as some speculative positioning was limited amid eurozone debt concerns.

Dollar gains against the EUR were offset by JPY weakness, which left NZD net unchanged, though NZD-JPY experienced good Japanese demand from 66.50 to the 67.00 region.

AUD-NZD also consolidated yesterday's recovery around 1.2650, which also restrained the topside in the dollar headline.

There was no impact from news that Fonterra's auction saw the biggest decline in diary products since July 2010, of 9.9%.

Meanwhile, the NZ consumer confidence index rose to 114.0 from 110.2 previously.

Copyright Action Economics