The Australian dollar ended near session lows after a brief stab above 72 US cents in local trade on Thursday, lacking yield support and battling sluggish commodity prices.
The Aussie had squeezed up to $0.7214, supported by a similar brief spurt higher for the kiwi dollar after New Zealand current account data largely met expectations.
The Aussie and kiwi are often traded together as a regional play. Recent falls have been steep, led by the kiwi, as investors ditch carry trades due to rising euro zone and Japanese yields and the risk of a cut in NZ rates later this year.
One Aussie bought $0.7175/80, steadying above Tuesday's 18-month low at $0.7148. It had traded a $0.7154-$0.7207 range overnight, but technical analysts said it needed to break above $0.7225 to alter its current downward bias.
"Without a pickup in commodity prices, the Aussie dollar will increasingly be sold into any rallies," said Richard Grace, currency strategist at Commonwealth Bank. Overall, commodity prices have been stagnating for six weeks. Gold, highly correlated to the Aussie dollar, has plateaued around $550 an ounce over the past week.
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