The Australian and New Zealand dollars were pinned near six-week lows on the euro on Friday as investors continued to pare short euro positions, putting both currencies on track to end the week nursing hefty losses. The euro powered up to A$1.2047 and NZ$1.5470, its highest since July 12, largely on short-covering.
Investors have been unwinding extremely bearish euro bets, even though there has been no new concrete development on a European debt plan. Against the US currency, the Australian dollar extended overnight losses to touch a trough of $1.0434, near its lowest level since late July on concerns over Chinese growth. The euro rose 0.8 percent to NZ$1.5455 in late trade on Friday.
For the week, it gained 1.2 percent. The single currency has steadily recovered since hitting a record low of NZ$1.4955 earlier this month. It climbed to a six-week high of NZ$1.5470 overnight. The New Zealand dollar also softened to $0.8126 from $0.8165, and up 0.6 percent for the week. It was also benefiting from broader selling in the Aussie against the kiwi , traded last at NZ$1.2826.
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