Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Australia, NZ dlrs set for biggest weekly fall since October

Published 23/11/2018, 03:11 pm
Updated 23/11/2018, 03:20 pm
© Reuters.  Australia, NZ dlrs set for biggest weekly fall since October

By Swati Pandey

SYDNEY, Nov 23 (Reuters) - The Australian and New Zealand dollars eased on Friday and were on track for their worst weekly performances since early October as a global sell-off in equities took the shine off risk assets.

The Australian dollar AUD=D4 , often traded as a liquid proxy for global trade prospects, held around $0.7255, drifting away from a 2-1/2 month top of $0.7338 hit last week.

The Aussie had cracked above critical chart resistance of 73 U.S. cents last week but was unable to hold on to gains. It is now down more than 1 percent this week.

Its New Zealand cousin NZD=D4 stumbled about 0.1 percent to $0.6804 on Friday after hitting a 4-1/2 month peak of $0.6883 last week.

The kiwi has fallen about 1 percent so far this week.

The losses in the two currencies coincided with a global share rout as investors fretted about a possible slowdown in world growth amid policy tightening in the United States and the bitter Sino-U.S. trade war.

Markets are focussed on a critical meeting between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, in Argentina next week to determine whether the world's biggest economies can de-escalate tensions over trade.

"Any good news at this meeting could boost the AUD," said Steven Dooley, currency strategist at Western Union Business Solutions.

Later in the day, investors will watch out for manufacturing activity reports from the United States and Europe, and a downward trend could further add to market jitteriness, analysts said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The antipodean currencies did not fare well elsewhere either.

The Aussie and the kiwi hovered near one-week lows on the British pound AUDGBP=R NZDGBP=R after Britian and the European Union in-principle agreed to a text setting out their future relationship before a summit on Sunday. Zealand government bonds 0#NZTSY= gained, sending yields down about 2.5 basis points at the long end of the curve.

Australian government bond futures were barely changed, with the three-year bond contract YTTc1 down half a tick at 97.860. The 10-year contract YTCc1 was flat at 97.330. (Editing by Simon Cameron-Moore)

Latest comments

nice one...
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.