SYDNEY/WELLINGTON: The Australian and New Zealand dollars were near multi-month lows on Friday after being battered by the clearest hint yet that the US Federal Reserve's loose money policies could start coming to an end late in the year.
The Australian dollar lower at $0.9820 from $0.9900 late on Thursday, having touched a fresh 11-month low of $0.9796. It has fallen more than 5 percent so far this month.
Little support seen before the June trough of $0.9580 with resistance at $0.9840.
The kiwi harder-hit at $0.8166 from $ 0.8252 late on Thursday, having skidded to $0.8137, a six month low. It has plunged 6 percent since its mid-April peak of $0.8676.
Support seen initially around the overnight and six-month low at $0.8135/40 and below that $0.8110, with resistance at $0.8200.
US dollar recovers to trade higher against the euro and yen in a volatile session.
The bounce higher came after John Williams, president of the Federal Reserve Bank of San Francisco, said the US Fed could begin easing up on the monetary gas pedal this summer and end its bond buys late this year.
His remarks offset earlier negative sentiment from a deluge of US data that highlighted vulnerabilities in the world's largest economy and curbed expectations that the Federal Reserve would scale back its bond-buying program soon.
A trio of hawkish regional Federal Reserve officials are calling for an end to the mortgage-backed bonds purchase programme, citing recent improvement in the housing market.
Yet, key Fed officials, including Chairman Ben Bernanke, appear reluctant to take the foot off the accelerator with the recovery remaining fragile and inflation heading lower.
The number of Americans filing new claims for unemployment insurance benefits last week jumped 32,000 to a seasonally adjusted 360,000, the biggest rise since November.
Factory activity in the US mid-Atlantic region contracted in May, with new orders at their lowest level in almost a year.
The Antipodeans post hefty losses across the board, slipping as much as 1 percent against the euro, pound, and the yen.
Against a basket of currencies, the Aussie at 75.5, its lowest since October and well off the 28-year peak above 80 set in April. The trade weighted kiwi dollar index down 0.6 percent at a six-week low.
New Zealand government's annual budget passed relatively unnoticed given its renewed commitment to a return to a small surplus in 2014/15.
Australian data calendar empty, New Zealand has first quarter producer prices, job adverts, and monthly consumer confidence.
New Zealand government bonds open with a bid tone, sending yields as much as 5 basis points lower.
Australian government bond futures rise with the three-year contract indicated up 0.04 points to 97.490 and the 10-year contract indicated 0.055 points higher at 96.815.
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