SINGAPORE: The Australian and New Zealand dollars made a steady start on Monday to a week crammed with global central bank meetings, a policy announcement in China and domestic economic data.
A sell-off in U.S. stocks steadied on Friday and support flowed through to the risk-sensitive Aussie and kiwi which by Monday traded on the strong side of 50-day moving averages.
The Aussie was 0.2% firmer at $0.6335, while the kiwi dollar was up by the same margin to $0.5759.
The two currencies have been choppy through 2025 so far, owing some of their recent stability to a wobbly U.S. dollar, which has kept them from falling while world markets have turned worried about U.S. growth and a tariff-driven trade slowdown.
“AUD has been capped into 0.6333/35 for a few days now but stands a good chance of clearing this level early in the week,” said Richard Franulovich, head of currency strategy at Westpac.
“The unwinding of U.S. exceptionalism has thus far landed on currencies very unevenly, but multi-month it is a clean, broad USD negative.”
In focus this week are central bank meetings in the U.S., Japan and Britain. Markets are confident policymakers will stay on hold, but a sense of their thinking on the sudden nerves that the U.S. may tip into recession could move currency prices.
Australia, NZ dollars sink on soaring euro; steady vs dollar
Australian February labour data and New Zealand’s December-quarter GDP figures are due on Thursday.
Chinese retail sales growth accelerated slightly in February, official data showed on Monday, ahead of a news conference where policymakers are expected to announce further measures to support what has been a fairly sluggish consumer.
Joe Capurso, a strategist at the Commonwealth Bank of Australia, said expectations for support may be a driver of recent gains for the New Zealand dollar against the Aussie, since New Zealand is an exporter of dairy and other foods.
The Aussie/kiwi cross fell to its lowest in three months on Monday at NZ$1.0982, dropping below its 200-day moving average.
Ten-year Australian government bond futures were steady at 95.55.
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