The Australian dollar fell below parity on Friday after the country's central bank said interest rates were likely to be on hold until late in the year, while the New Zealand dollar followed to a three-week low. The Aussie dollar shed half a cent to a week-and-a-half low of $0.9980 after Reserve Bank of Australia (RBA) Governor Glenn Stevens said the central bank was ahead of the game with past hikes and policy could be on hold for an extended period.
Australian bond futures also gained while the yield curve steepened. The three-year contract gained 0.06 points to 94.74 and the 10-year contract added 0.02 point to 94.285. The Australian dollar shed two cents this week with support seen at $0.9963 and resistance around $1.0088 ahead of $1.0152. The New Zealand dollar also hit a three-week trough at $0.7596, to be down one percent on the week.