SYDNEY/WELLINGTON: The Australian and New Zealand dollars were perilously close to major chart bulwarks on Thursday as the US dollar continued its broad advance, though both currencies fared better against the low-yielding euro and yen.
The Aussie eased to $0.7584, after failing to clear resistance at $0.7664. The focus was on the recent low of $0.7564 where a break would risk a retreat to $0.7500, if not the 200-day moving average at $0.7385.
The kiwi faded to $0.6975 and away from resistance at $0.7033. Again, that was uncomfortably near a recent four-month trough of $0.6944 and a breach would open the way to the 200-day moving average at $0.6880.
While three-year yields are pinned near 0.1%, longer-term yields have been carried higher by the global reflation trade leaving the yield curve at its steepest in decades. Yields on 10-year bonds were up at 1.819% on Thursday, a rise of 15 basis points for the week.