The Australian and New Zealand dollars loitered around multi-week lows on Monday while bonds skidded as the greenback jerked higher amid rising inflation expectations in the United States. The Australian dollar held at $0.7676 after hitting a two-week trough of $0.7655 on Friday. The currency slipped 1.3 percent last week, its biggest weekly fall since mid-March.
The New Zealand dollar stumbled to $0.7199, the weakest since April 3. It has extended its run of losses to five days now, the longest stretch since mid-November when it fell for eight sessions on the trot. The kiwi declined 1.9 percent last week, its worst showing since mid-October.
New Zealand government bonds eased, sending yields about 3.5 basis points higher at the long end of the curve. The Australian three-year bond futures contract hit its lowest since late 2015. It was last down 4 ticks at 97.690. The 10-year contract slipped 6 ticks to a two-month trough of 97.120.
Investors anxiously awaited surveys on global manufacturing for April due later in the day to ascertain whether the slowdown in the first quarter was temporary. They also looked ahead to Australian consumer price data due Tuesday with March quarter core inflation seen at 1.8 percent, below the central bank's target band of 2-3 percent.
Traders say the Aussie could fall below critical chart support of $0.7650 if the inflation figures miss forecasts amid bets the Reserve Bank of Australia (RBA) will prolong its spell of stable rates. "For the AUD, all eyes will be on consumer price data tomorrow," ANZ analysts said in a note.