The Australian and New Zealand dollars plumbed one-week lows against the greenback on Thursday, tracking a decline in the euro in thin year-end conditions ahead of an Italian debt auction. Italy aims to sell up to 8.5 billion euros of bonds later on Thursday and markets are keen to see if its borrowing costs will ease.
On Wednesday, Rome's short-term funding costs halved at an auction, but analysts warned against expecting such a big drop in yields on Thursday. Market sentiment was already dampened after data showed European banks were still hoarding cash even after the European Central Bank provided nearly half a trillion euros in three-year loans last week.
The Aussie fell as low as $1.0044, from $1.0090 late in New York, but trimmed its losses to trade last at $1.0091. Near-term support was seen around $1.0040, the 50 percent retracement of the December 15 to 21 rise. The kiwi dollar reached a low of $0.7654 from New York's $0.7688. But like the Aussie, it has edged back up to $0.7695. Support was seen around $0.7653, then $0.7625, while $0.7735 should limit the topside.
Comments
Comments are closed for this article.