Australia dlr Eases, Poised for Weekly Loss; NZ Down too


SYDNEY, Feb 5 Reuters The Australian dollar slipped on Friday and was on track for a small weekly loss led by a pullback in global risk sentiment and on comments by the countrys top central banker that interest rates will stay low for a long time to come.

The Australian dollar was last at 0.7595 after going as high as 0.7648 on Thursday.

The kiwi dollar too was off slightly at 0.7148 after rising to 0.7225 the previous day.

The antipodean currencies are looking at weekly losses.

The Aussie is so far down 0.6 this week while the kiwi has lost 0.5 of its value.

Analysts expect the currencies to meander a bit in the nearterm led by better U.S. economic data in recent weeks and with fiscal stimulus set to provide additional support.

The AUD has lost some of its lustre in recent weeks as elevated volatility and softer industrial data took the wind out of the global reflation trade, ANZ economists said.

We think the prospects of a vaccinedriven recovery and policy that remains patient suggests that dips will be shallow, while the mediumterm path remains higher.

Earlier, Reserve Bank of Australia RBA Governor reiterated the central bank will keep rates near zero until inflation reaches its mediumterm target of 23 even though the economy has done better than expected in recent months.

The RBA this week left its cash rate at a record low 0.1, but surprised by extending its quantitative easing programme by another A100 billion 76.01 billion from midApril.

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