SYDNEY/WELLINGTON: The Australian dollar was fighting to keep a rally alive on Wednesday after a top central banker bluntly rebuffed market chatter about early rate increases, helping pull local yields lower.
The Aussie faded to $0.7684, having just survived another brush with support around $0.7620 overnight. It needs to clear $0.7727 resistance to find firmer footing, while a break of the February low at $0.7565 would signal a deeper correction.
The New Zealand dollar dipped to $0.7150, and looked in danger of again testing support at $0.7105. Resistance lies at $0.7195, with more up at $0.7270.
For now, yields on 10-year notes eased 6 basis points to 1.73% and away from last week’s high of 1.87%.
Three-year bond futures edged up 2 ticks to 99.752, though the implied yield of 0.248% remains well above the RBA’s target of 0.1%. Across the Tasman, the Reserve Bank of New Zealand (RBNZ) also remains committed to low rates, but took a small step away from emergency settings.
Comments
Comments are closed.