By Wayne Cole
SYDNEY (Reuters) - The Australian and New Zealand dollars edged ahead on Tuesday as stock markets swung higher once again to the benefit of other risk assets, though concerns about the spread of the coronavirus globally kept a lid on gains.
Sentiment was also helped by a survey of Chinese manufacturing activity which just topped forecasts.
The Aussie firmed 0.3% to $0.6883
Support now lies at $0.6840 and $0.6800, with resistance around $0.6895 and $0.6974.
It was a solid end to a stellar quarter which saw the Aussie rally more than 11% in the past three months, its best performance since late 2010.
The kiwi dollar was up a shade at $0.6423
The kiwi is up 7.7% for the June quarter, the biggest gain since mid-2011.
Strong demand for bonds suggests some investors fear a resurgence of the virus will retard economic recovery globally, even as other buy stocks on the expectations of continued stimulus.
Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle on Tuesday reiterated the bank would do whatever was necessary to support the local economy, while also noting the downturn in activity had not been as dire as first feared.
"Debelle is implicitly supporting the extension of fiscal stimulus and support measures, saying that fiscal and monetary support remains warranted," said Craig James, chief economist at CommSec.
Debelle did, however, rule out a shift to negative interest rates, which some analysts have been touting.
That left 10-year bond yields
(Editing by Lincoln Feast.)