The Australian and New Zealand dollars hovered near multi-year lows on Friday, after the European Central Bank (ECB) launched a larger-than-expected stimulus programme, putting them on track to post deep losses for the week. The Australian dollar struggled to make headway, having dropped below 80 cents for the first time in nearly six years. It was last at $0.8025 and was set to post a 2.4 percent loss for the week, the largest since September.
Major support was found at the 61.8 percent retracement of the $0.6007-$1.1081 rise at $0.7945. The New Zealand dollar held at $0.7520 after it slumped to an overnight low of $0.7480, a level last seen in June 2012. The Antipodeans sell-off came after the ECB said it would buy 60 billion euros worth of assets per month until September 2016. The amount was more than markets had been expecting and boosted the US dollar.
Market attention is on China where expectations of more stimulus have persisted as growth cooled. A private survey on China's manufacturing sector for January is due at 0145 GMT. In New Zealand, the kiwi was on the defensive, down nearly 4 percent this week, on soft inflation data and the likelihood the central bank will scrap any hint of a tightening bias at next week's rate review. Support is seen at $0.7460 with offers emerging towards $0.7580.
The euro slid to NZ$1.5113, back within sight of a lifetime low of NZ$1.4778 touched last week. New Zealand government bonds had an offered tone, sending yields up to 4 basis points higher. Australian government bond futures were a touch softer, with the three-year bond contract off 1 tick at 97.940. The 10-year contract also shed 1 tick at 96.430.
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