Australia, NZ dollars pause near multi-month peaks as bond selloff deepens
TLT•Currencies near highs as bonds sell off
SYDNEY, Sept. 1 (Reuters) - The Australian and New Zealand dollars loitered near multi-month highs on Tuesday as a global selloff in bonds kept investors cautious, although domestic economic data offered support at the margin.
Selling across global debt markets saw Australian 10-year bond yields AU10YT=RR spike 9 basis points to a five-month top of 5.166%, while 3-year futures YTTc1 slid 7 ticks to 95.280.
Treasuries led the rout on concerns about U.S. budget deficits and debt levels, while local markets have also come under pressure from expectations that interest rates may need to remain higher for longer to tame inflation.
Aussie and kiwi trade near recent ranges
The Aussie held at $0.7170 AUD=D3, after finding bids around $0.7150. Resistance lies at the recent 15-week top of $0.7208 and the May peak of $0.7277.
The kiwi dollar was flat at $0.5916 NZD=D3, having barely budged overnight. Support lies at $0.5900 and $0.5860, with resistance at the recent three-month top of $0.5988.
