The Australian dollar touched a two-week low on Friday, staring at its second straight weekly loss as its US counterpart strengthened ahead of US third-quarter economic data. The Australian dollar held at $0.7593 after hitting a trough of $0.7579, its lowest since October 14. It fell 0.8 percent on Thursday, its biggest loss in a week.
The Aussie had risen as high as $0.7709 on Wednesday but once again turned tail at the level, marking the fifth time since September that it has lost a bout with the crucial 77-US cents barrier. Data out Wednesday showed consumer prices slightly topped expectations but underlying inflation, a measure the Reserve Bank of Australia (RBA) watches, had a narrow miss. The Aussie was also weighed down by a firmer US dollar which gained from yields on Treasuries rising to roughly five-month peaks, tracking German and British bond yields.
The New Zealand dollar huddled near 9-day lows on Friday, after two straight days of losses. The kiwi traded around $0.7134 after hitting a trough of $0.7109 the previous day. It is on track to end the week down 0.4 percent after rising more than 1 percent last week.
New Zealand government bonds eased, sending yields 4.5 basis points higher at the long end of the curve. Australian government bond futures hit 5-month lows amid a global sell-off of sovereign debt, in part on speculation inflation might make a come-back as commodities rally. The three-year bond contract dropped 3 ticks to 98.24, while the 10-year contract slipped 5.6 ticks to 97.635.
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