SYDNEY: The Australian and New Zealand dollars pared recent gains on Wednesday as a sell-off in global shares dragged on risk currencies, while Aussie bonds underperformed as government borrowing plans disappointed bulls.
The Aussie faded to $0.7817 and away from a 10-week top of $0.7891 hit early in the week. A sustained break of chart support around $0.7820 could see a test of $0.7790, and risk a relapse toward $0.7700.
The kiwi dollar eased to $0.7248, having also failed to sustain a 10-week high at $0.7304. The loss of $0.7240/50 could see it back to $0.7210. The Aussie was undermined in part by news China’s Dalian Commodity Exchange was proposing to reduce the standard iron content requirement in its flagship futures, seeking to broaden supply sources and stem a record-setting rally.
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