The Australian dollar is set for a subdued weekly performance as traders wager on a small chance of a cut in the country's official cash rate while its New Zealand cousin retreated from a near six-month top. The Australian dollar was last at $0.7229 on Friday after three straight days of losses took it to a three-week trough of $0.7192.
It is now down about 1 percent so far this week, erasing all of the gains made the prior week. The Aussie has stumbled about 7 percent this year as investors use the currency as a proxy for Chinese growth. And, with China's outlook clouded by an ongoing trade war with the United States the Aussie has, in turn, suffered collateral damage.
Also weighing on the Aussie, data out earlier this week showed economic growth slowed more sharply than expected last quarter. The New Zealand dollar paused at $0.6886 after two straight days of losses. It started the week on a firm footing, climbing to $0.6969 but soon retreated amid a global markets rout.
For the week, the currency is barely changed. Technical analysts see critical chart support at $0.6850. The kiwi has lost about 3 percent of its value so far this, paring some of their earlier losses on better-than-expected economic data lately.
Comments
Comments are closed.