SYDNEY: The Australian and New Zealand dollars got a brief respite from selling on Friday as their US counterpart was restrained by a round of weak economic data, though both were perilously close to reaching new lows for the year.
The Aussie was stuck at $0.6890, after finding some support around $0.6853. A break of the May trough of $0.6829 would trigger more selling while a move above $0.6920 resistance is needed to stabilise the technical outlook.
The kiwi dollar held at $0.6228, having come within a tick of its June low of $0.6197. A break there could unleash a further retreat to at least $0.5920 support.
Sentiment was helped by better data from China, particularly on the service sector, but prices for major commodities remained pressured by fears of a global recession.
Expectations of another rate rise by the Reserve Bank of Australia (RBA) next week have offered little support so far, with the US Federal Reserve moving more aggressively.
Markets are wagering heavily on a hike of 50 basis points to 1.35% and further rises to 3.25% by year end, though that is down from 3.75% just a couple of weeks ago.
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