The Australian dollar came off a one-month high on Thursday while its New Zealand cousin languished at near three-month lows as the greenback gained after strong US economic data. The Australian dollar stood at $0.7902, down from Wednesday's high of $0.7996.
It hit a two-year peak of $0.8066 in late July, but has since faltered at stiff chart resistance around 80 US cents. Across the Tasman Sea, the New Zealand dollar slipped for a second straight session to $0.7164, its lowest since June 6. The kiwi has been falling since late July amid softer economic data and political uncertainty. Comments from New Zealand's outgoing central bank Governor Graeme Wheeler that a lower NZ dollar was needed also weighed on the currency.
New Zealand government bonds inched higher, sending yields around 1 basis points lower across the curve. Australian government bond futures eased, with the three-year bond contract down 1 tick at 97.970. The 10-year contract slipped 3.5 ticks to 97.2900. The Aussie is poised to end August 1.2 percent down on a generally higher US dollar and as investors remain cautious about geopolitical tensions involving North Korea.
The US dollar rose overnight after US economic growth was revised up to an annualised 3 percent in the second quarter, the quickest in more than two years. The ADP National Employment Report showed employers from the US private sector hired 237,000 workers in August, the biggest monthly increase in five months, driving expectations for a solid payrolls figure due on Friday.