The Australian dollar slipped again on Friday to a near five-month trough while its New Zealand cousin paused after eight straight sessions of losses as the greenback looked set to continue climbing. The Australian dollar eased to $0.7548, a level not seen since early December. Technical analysts see critical support at $0.7498.
The Aussie fell on every single day of this week and is on track for its second straight weekly loss. The New Zealand dollar was a shade softer at $0.7060, its lowest since late December.
The kiwi is down more than 2 percent for the week so far, following a 1.9 percent drop last week. It has now stretched its run of losses to eight sessions, the longest since November 2017.
The declines in the antipodean currencies came as US 10-year yields rose above the psychological 3 percent barrier earlier this week. The upsurge has pushed the dollar to its highest since early January against a basket of currencies.
But other factors are also weighing on the Aussie. New Zealand government bonds rose, sending yields down about 5 basis points at the long end and 2 basis points lower at the short end of the curve.
Australian government bond futures gained, with the three-year bond contract up 3 ticks at 97.740. The 10-year contract added 3.5 ticks to 97.1550. "It is noticeable that the AUD has come under increasing pressure since the start of the year as both iron ore and Chinese equity prices have weakened," said Simon Derrick, chief currency strategist at BNY Mellon.
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