The Australian and New Zealand dollars sank to multi-month lows on Friday due to the greenback's broad strength after Federal Reserve Chair Janet Yellen signalled US interest rates will probably rise next month. The Australian dollar broke key chart support levels to fall to $0.7382, the lowest since June 30. The Aussie is on track for its worst weekly performance since May 5.
It has tumbled nearly 5 percent since November 8 as Donald Trump's victory in the US presidential election has raised the spectre of faster US inflation and, perhaps, more rate hikes by the Federal Reserve. Elsewhere, the Aussie rose 0.22 percent against the yen, camping near a 6-1/2 month peak. It slipped again on the euro, drifting away from a 17-1/2 month high touched on November 10.
The New Zealand dollar fell for a fifth straight session on Friday to a 3-1/2 month low of $0.70. The Kiwi briefly rose to $0.7029 after a private survey showed consumer confidence was at its highest level since early 2015. It last traded at $0.7005, down 0.2 percent.
In contrast to its trans-Tasman cousin, New Zealand is enjoying strong employment growth and consumer spending, but despite optimism about its economy, a recent surge in the US dollar has left the outlook for the Kiwi weaker, analysts said. New Zealand government bonds skidded, sending yields 11 basis points higher at the long end of the curve. Australian government bond futures tumbled, with the three-year bond contract sliding 8 ticks at 98.15. The 10-year contract dived 14 ticks to 97.325.