The Australian dollar skidded to an 11-week trough on Friday after another slide in commodities dented risk sentiment, while the New Zealand currency also came under pressure, putting both units on track for weekly losses. The Australian dollar dropped to as low as $0.7286, its weakest reading since early March, after stops were tripped on the break of key support at 73 cents. It was last at $0.7298 with the next big support level seen around the 200-day moving average of $0.7260.
The Aussie has tumbled more than five cents since its April 21 peak, setting the stage for a fourth consecutive week of losses. The Aussie has slipped 1 percent since Monday. It dropped a leg lower after another fall in prices of iron ore, Australia's top export earner. The mineral touched its lowest in two-months on Thursday to be down nearly 6 percent this week.
Selling picked up steam with further unwinding of Aussie long positions. Data from the Commodity Futures Trading Commission showed speculators were still net long the week ended May 3. New Zealand government bonds eased, sending yields six basis points higher at the short end and five at the long end. Australian government bond futures were quiet, with the three-year bond contract steady at 98.450. The 10-year contract added 2 ticks to 97.7250, while the 20-year contract edged 2 ticks lower to 97.0600.