SYDNEY: The Australian and New Zealand dollars are headed for hefty weekly losses on Friday as a high-level meeting in China failed to yield any forceful stimulus steps and the popular carry trades using the yen as funding currency unwound.
The US dollar, meanwhile, attracted bids in a week that saw a sell-off in stocks and geopolitical uncertainties while rising bets of a Trump victory in the White House also added to momentum.
The Aussie held at $0.6702, around the lowest in two weeks, having slipped through a key support level of $0.6715 overnight. It fell 1.2% this week, the first decline in six weeks, with support at 67 cents for now.
The kiwi dollar eased 0.2% to $0.6031, after dropping 0.6% overnight to breach key support at the 200-day moving average of $0.6077. It is set for a weekly drop of 1.4%.
It has been weighed lower by expectations of three rate cuts this year from the Reserve Bank of New Zealand which could start as soon as next month, after a soft second quarter inflation report.
Comments
Comments are closed.