Australia, NZ dollars flatline but upward momentum builds

SYDNEY: The Australian and New Zealand dollars were flat on Friday in a US holiday impacted market, but they were set for a second consecutive weekly gain as bets that US rates have peaked helped build upward momentum.

The Aussie was idling at $0.6556, having been mostly rangebound between $0.6540 to $0.6570 overnight. It is up 0.5% for the week, but it still faces resistance at the 200-day moving average of $0.6590.

The kiwi dollar eased 0.1% to $0.6045, after rising 0.5% overnight to $0.6065. It is perched near a three-month top of $0.6085, and headed for a 0.9% advance for the week.

In New Zealand, the National Party formally signed an agreement to form the country’s next coalition government on Friday, after negotiating for more than a month over ministerial roles and policies.

The new government intends to narrow the Reserve Bank of New Zealand’s (RBNZ) remit, removing the dual mandate on inflation and employment to focus monetary policy only on price stability.