Australia, NZ dlrs off lows, still at risk from USD bulls
Reuters
Published Dec 30, 2016 11:59
Australia, NZ dlrs off lows, still at risk from USD bulls
SYDNEY/WELLINGTON, Dec 30 (Reuters) - The Australian and New Zealand dollars inched higher in thin holiday trading on Friday but looked set to end December lower, extending their losing streak to a third straight month.
The biggest move came against the euro, which shot higher after computer-driven buying against the U.S. dollar tripped stop-loss orders.
The single currency climbed 1.5 cents at one stage to touch A$1.4718 EURAUD= , before fading back to A$1.4565.
Against its U.S. counterpart, the Aussie AUD=D4 was up 0.36 percent at $0.7238 and off a seven-month trough of $0.7160 hit last week.
The Aussie is still down nearly 2 percent in December and 0.6 percent for the year, its fourth straight annual loss.
Analysts expect more of the same in the New Year with the U.S. currency and Treasury yields on an uptrend following Donald Trump's upset victory in the U.S. presidential election last month.
Data showing the Australian economy shrank for the first time since 2011 in the third quarter, raising the spectre of a possible recession, has also weighed on the currency.
In comparison, the New Zealand dollar NZD=D4 barely moved on Friday to stay at $0.6965, not far from a seven-month low of $0.6863 touched last week.
The Kiwi is set to end the week 1.2 percent higher after two straight losses. For the year, it is on track for a gain of 2 percent following three consecutive years of negative returns.
While the antipodean currencies were hit heavily after the U.S. election, the Kiwi has been supported by a run of strong domestic economic data and a rally in the price of milk, the country's top export earner.
New Zealand government bonds 0#NZTSY= rose, sending yields about 3 basis points lower across the curve.
Australian government bond futures eased, with the three-year bond contract YTTc1 and the 10-year contract YTCc1 off 1 tick each at 97.92 and 97.175 respectively.
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Written By: Reuters
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