SYDNEY: The New Zealand dollar was poised for its biggest weekly decline in more than two months on Friday, while the Aussie barely budged as risk appetite took a knock from a tech stock rout. The Australian dollar was flat so far this week after falling 1.17% last week.
On the day, it was slightly higher at $0.7275. The New Zealand dollar slipped 0.9% this week and is set for its biggest weekly loss since mid-May. It was last up 0.2% at $0.6664.
New Zealand government bonds were mostly unchanged at the long-end of the curve, but they were slightly higher at the short-end. The country will report gross domestic product data next Thursday. Australian government bond futures were mixed, with the three-year bond contract flat at 99.710. The 10-year contract was up 2 ticks at 99.0780.
"Volatility has returned to markets, particularly equities with some notable wobbles in the tech sector," ANZ analysts wrote in a note, saying it made for an "interesting backdrop" for the US Federal Reserve policy meeting next week.
US technology stocks tumbled this week as investors reconsidered their high valuations against a backdrop of a slow global economic recovery from the coronavirus-led slump.
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