Australia, NZ dollars steady above lows; bonds get some relief
TLT•The Australian and New Zealand dollars steadied as falling U.S. Treasury yields supported bonds. Australian 10-year yields fell 6 basis points to 5.345%, while the Aussie held at $0.6960 and the kiwi at $0.5603.
1. Currencies and bonds
The Australian and New Zealand dollars found some support as a sharp fall in Treasury yields restrained the greenback and lifted bonds. Australian 10-year yields fell 6 basis points to 5.345%, moving away from a recent 15-year high of 5.428%. The Aussie edged up from an overnight low of $0.6933 to $0.6960, while the kiwi held at $0.5603 and remained down 0.2% for the week.
2. Jobs report ahead
Australia’s September jobs report is due Thursday after unemployment unexpectedly rose to a five-year high of 4.6% in August. Employment increased by 39,500 that month, while the workforce grew by almost 68,000. Markets imply about a 30% chance of a Reserve Bank of Australia rate hike in November and 46% in December, following last month’s increase to 4.60%.
