Australian and New Zealand dollars on the run after heavy losses

The Australian and New Zealand dollars, among this week's worst performers in major currencies, nursed deep bruises on Friday following an investor stampede to the safety of cash and bonds on mounting fears of a global recession. The Aussie dollar was pinned at $1.0436, after getting pummelled on fears the US economy was sliding back and Europe's massive debt woes are here to stay.
The local currency hit a six-week low of $1.0425, having tumbled 3 cents in the past 48 hours. It has plummeted 5 percent this week, and was well away from a post-float high of $1.1081, on a massive wave of risk aversion. This is the fourth time the Aussie has dropped to $1.0390-$1.0400 range since April, before bouncing back each time. Strong support is seen at $1.0390, the June 27 trend trough, with a topside target at $1.0600. The New Zealand dollar nursed its bruises at around $0.8366, having touched a three-week low of $0.8274. It sunk 3.5 cents overnight and nearly 6 percent this week, from its 30-year high of $0.8842.