The Australian dollar shed more than a full cent on Monday, while its New Zealand peer also lost ground as the greenback powered ahead on fresh worries about the euro zone debt crisis that prompted a broad sell-down in riskier assets. The heightened risk aversion sparked a rush to safe-haven government bonds, helping drive Australian bond futures sharply higher. The 10-year contract hit a 2-1/2 year high at 95.885 and last traded at 95.870, up 0.14 points on the day.
New Zealand government bonds also closed solidly bid, sending yields 5.5 basis points lower. The Aussie plumbed a low around $1.0328 from $1.0460 late New York on Friday, hit by a constant wave of selling. It last stood at $1.0342, having broken through its 200-day moving average at $1.0323, and was currently testing support at $1.0346, the 50 percent retracement of the August 9 to September 1 rise. The kiwi last traded at $0.8158, having dipped briefly to a four-week low of $0.8140, down sharply from around $0.8215 at the end of last week.
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