The Australian and New Zealand dollars recouped some of its recent losses on Monday after a bounce in Shanghai stocks set off a short-squeeze. The Australian dollar recouped all of this session's losses to trade at $0.8942, after falling as far as $0.8861 earlier. That still left it a long way from last week's $0.9223 peak. The New Zealand dollar also rebounded to $0.7065, up from a low of $0.6997.
Against the yen, the Aussie dollar also rebounded to 76.83, up from the day's low 75.93. Yet, some analysts warned the bounce will not last. Underscoring the unease among investors, Australian bond futures rallied. Three-year futures added 0.04 points to 95.43, while ten-year futures climbed 0.08 points to a 15-month high of 95.035. The kiwi edged its way back to around $0.7040 late in the local session, after ranging between a six-week low of $0.6997 and $0.7080.