SYDNEY: The Australian and New Zealand dollars slipped on Friday but were still set for the first weekly gain in a month thanks to higher commodity prices and the broad retreat in the US dollar.
The Aussie eased 0.2% to $0.6572 ahead of the key US labour data later in the day.
It was, however, headed for a weekly gain of 0.8% and has support at the 200-day moving average of $0.6546.
The kiwi was also off 0.1% to $0.6016 and was up 0.7% for the week.
It still faces heavy resistance at the 200-day moving average of $0.6026.
The two had benefited from the broad retreat of the US dollar to two-week lows and the persistent weakness in the Japanese yen against other crosses.
Higher copper and oil prices also helped the Aussie as Australia is a major resources exporter.
The Aussie eased 0.4% on Friday to 99.28 yen after hitting a fresh nine-year top of 100.4 yen overnight.
Australia, NZ currencies hit one-month lows on yen, subdued against US dollar
The kiwi also fell 0.3% to 90.88 yen.
Much of the focus will be on the US nonfarm payrolls report due later in the day and rising geopolitical tensions in the Middle East,which has spurred some safe haven demand into bonds.
“Consensus reckoned that today’s nonfarm payrolls (NFP) could fall to 214k in March from 275k in February. However, we cannot rule out surprises in NFP,” said Philip Wee, senior FX strategist at DBS Bank. “Another surprise rise in the unemployment rate should see the Fed keeping to the three rate cuts it projected later this year.”
Down Under, data showed that Australia’s surplus on trade goods shrank to a five-month low in February as exports of iron ore fell while imports jumped.
Even though the Reserve Bank of Australia did not consider a rate hike at its March meeting, a marginal slowdown in the labour market had markets wagering on just 30 basis points of easing this year.
In New Zealand, the Reserve Bank of New Zealand is expected to hold interest rates steady at 5.5% next Wednesday.
Markets are pricing in a 50% chance the RBNZ could cut rates as early as July, while a quarter-point cut is fully priced for August.
The market implies roughly 72 basis points of easing this year, even though the RBNZ has projected no cuts until well into 2025.
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