The Australian and New Zealand dollars edged up against their US counterpart on Friday and bounced off multi-year lows versus the yen, though they were still on track for a hefty weekly decline against the Japanese currency. The Australian dollar rose to $0.7390, from $0.7364 early, having recovered from a low of $0.7286 touched on Thursday in a volatile session. It was up 0.2 percent for the week and if sustained, it would be the third week of gains. The Aussie has skidded around 11 percent this year.
Resistance was found at this week's peak of $0.7450, a level tested twice. A break above would target a one-month high of $0.7505. Key support was found around $0.7330. A rally in Japanese stocks helped the Antipodean currencies regain some lost ground against the safe-haven yen with the Aussie up 0.7 percent to 77.31 yen on the day, away from a four-year trough of 75.56. Yet, it was still 2 percent lower for the week. The Kiwi bounced to 73.72 yen, from 72.28 touched on Thursday, a level not seen since early 2013. It has skidded 2.3 percent this week.
The New Zealand dollar was a touch firmer at $0.7051, from a low of $0.6970 in the last session and was on track to end the week where it started. New Zealand government bonds gained, sending yields 1.5 basis points lower at the long end of the curve. Australian government bond futures retreated from all-time highs touched earlier in the session, with the three-year bond contract off 6 ticks at 98.480. The 10-year contract skidded 8.5 ticks to 97.9000, while the 20-year contract dropped 7 ticks to 97.3450. The Aussie has been buffeted this week by a flare-up in global risk sentiment, particularly Britain's potential withdrawal from the European Union.
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