The Australian and New Zealand dollars rose against the greenback and the yen after a report showed U.S. payrolls increased in September by more than economists forecast, boosting demand for higher-yielding assets. The so-called Aussie climbed for a fifth day versus the dollar before an Oct. 13 report projected to show Australian employers added jobs last month for the first time since June. New Zealand’s dollar, nicknamed the kiwi, strengthened as German Chancellor Angela Merkel and French President Nicolas Sarkozy gave themselves three weeks to devise a plan to recapitalize European banks and address the debt crisis in Greece. “The payroll number takes some of the negativity away from the U.S. economic outlook, but the euro zone will continue to dominate sentiment,” said Imre Speizer, a strategist in Auckland at Westpac Banking Corp., Australia’s second-largest lender. “We should see a risk-on move this week helping the Aussie and kiwi dollars track higher.” Australia’s dollar rose to 98.36 U.S. cents at 4:53 p.m. in Sydney from 97.68 cents in New York last week, when it advanced 1.1 percent. The currency fetched 75.48 yen from 74.96 yen. New Zealand’s dollar gained to 77.39 U.S. cents from 77.01 cents on Oct. 7 and strengthened to 59.38 yen from 59.04 yen. U.S. payrolls increased by 103,000 in September after a 57,000 gain in August, the Labor Department said on Oct. 7. The median forecast in a Bloomberg News survey of economists called for an increase of 60,000. The jobless rate held at 9.1 percent. Australian Jobs Australian employers probably added 10,000 jobs in September, after cutting 9,700 positions in August, the statistics bureau will say this week, according to the median forecast of economists surveyed by Bloomberg. Demand for the Australian and New Zealand currencies was bolstered after Merkel said European leaders will do “everything necessary” to ensure that banks have enough capital. Sarkozy said they would deliver a plan by the Nov. 3 Group of 20 summit. “We expect that the euro zone will put in place a backstop for its banks to prevent a financial crisis and recession,” wrote Peter Jolly, the Sydney-based head of market research at National Australia Bank Ltd., the nation’s largest lender to businesses. “Risk appetite and the Australian dollar should rebound as the market’s worst fears aren’t realized.” The bank forecasts the Aussie will climb back above parity with the U.S. currency by year-end. Australia’s benchmark 10-year bond yields rose for a fourth day in the longest stretch of gains since July, adding six basis points, or 0.06 percentage point, to 4.30 percent. New Zealand’s two-year swap rate, a fixed payment made to receive floating rates which is sensitive to interest-rate expectations, rose to 3.13 percent from 3.09 percent last week. To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net To contact the editor responsible for this story: Garfield Reynolds at greynolds1@bloomberg.net

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