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Australia, NZ dlrs near multi-month lows on USD, euro and pound

Published 01/05/2017, 01:33 pm
Updated 01/05/2017, 01:40 pm
© Reuters.  Australia, NZ dlrs near multi-month lows on USD, euro and pound
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By Cecile Lefort and Charlotte Greenfield

SYDNEY/WELLINGTON, May 1 (Reuters) - The Australian and New Zealand dollars hovered near multi-month lows against the U.S. dollar, euro and pound on Monday as lingering uncertainty about U.S. trade policies sapped appetite for commodity currencies.

The Australian dollar AUD=D4 eased to $0.7477, from $0.7490 on Friday, having touched $0.7440 last week, its lowest since mid-January. It posted a loss of 1.8 percent in April, the largest monthly loss this year.

Traders see possible further downside due to crowded one-way bets.

"The bulls are still holding longs. A clean break of $0.7400 may cause traders to bail," said Stephen Innes, a senior trader at OANDA.

Data from the Commodity Futures Trading Commission showed speculators are net long 42,702, ID:nL1N1I026

The Antipodean currencies were also near multi-month lows against the euro and pound.

The euro trimmed some of its stellar gains made last week at A$1.4562 EURAUD=R when it climbed to the highest this year at A$1.4650. It gained around 4 percent in April, the largest such increase in two years.

Likewise, the common currency hovered at NZ$1.5872 EURNZD=R against the New Zealand dollar, having powered up to NZ$1.5939, the highest level since June last year. It rose 4 percent last week, the biggest such gain in nearly a year.

The Antipodean currencies were nursing heavy losses against the pound which jumped around 5 percent in April against both the Aussie and Kiwi GBPAUD=R GBPNZD=R .

Data in Australia showed a sharp slowdown in home prices, whch should help ease policymakers concern over the risks of a debt-fuelled real estate bubble. ID:nL4N1I300M

The Reserve Bank of Australia (RBA) holds its monthly policy meeting on Tuesday and is considered certain to hold rates at a record low 1.5 percent following two cuts last year. ID:nL4N1I02HF

All 71 economists polled by Reuters forecast rates would be held steady and the majority predicted no change in the cash rate over the next 12 months.

The New Zealand dollar NZD=D4 drifted lower to $0.6857, from $0.6870 late on Friday.

One possible bright spot for investors was first quarter labour data due out on Wednesday, which was expected to show strong job growth and unemployment remaining near eight-year lows.

New Zealand government bonds 0#NZTSY= gained, sending yields 3.5 basis points lower at the long end of the curve.

Australian government bond futures were subdued, with the three-year bond contract YTTc1 steady at 98.170. The 10-year contract YTCc1 eased half a tick to 97.3900, while the 20-year contract YXXc1 shed two ticks to 96.8050. (Editing by Simon Cameron-Moore)

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