SYDNEY: The Australian and New Zealand dollars surrendered some ground on Wednesday amid concerns booming commodity prices would drag on global growth, and Australia’s central bank sounded in no rush to raise rates.
The Aussie lapsed to $0.7273, and further away from the week’s peak of $0.7440. That took it back under the 200-day moving average at $0.7318 and put the near-term focus on support around $0.7245.
The kiwi dollar was left at $0.6805, having recoiled all the way from Monday’s top at $0.6926. Support now lies at $0.6800 and $0.6767.
Both eased on the euro which rallied to A$1.4986 and away from a four-year trough of $1.4554 touched on Monday, though it remains far below the A$1.5900 level held just a couple of weeks ago. Global commodity prices steadied after their recent surge as investors sought some sense of how long the Russian-Ukraine conflict might last.
Reserve Bank of Australia (RBA) Governor Philip Lowe warned the jump in commodity prices would likely lift inflation further and could feed through to wage claims.
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