The spring months were kind to the currencies Down Under, as the Aussie/U.S. dollar (AUD/USD) and the New Zealand/U.S. dollar (NZD/USD) were finally able to shake off the massive bear moves that had driven them to multi-year lows in late 2008 and 2009.

A number of factors contributed to the bullish turnarounds in the Aussie and the kiwi, including positive growth and interest-rate differentials, a shift away from risk aversion, and rising commodity prices in recent months.

Let’s take a look at the economic forecasts, monetary policy outlooks, and currency market forecasts for these two countries. Do the fundamentals support an extension of these currencies’ rallies, or have the Aussie and kiwi overextended themselves?