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Australia, NZ dlrs Take Breather after Volatile Week

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SYDNEY, June 7 Reuters The Australian and New Zealand dollars were little changed in thin trading on Monday, after a volatile week that ended with both currencies benefiting from a weaker dollar on Friday following disappointing U.S. nonfarm payrolls data.

The Aussie was trading 0.4 lower at 0.7739 against the greenback at midday in Asia, having gained 1.04 on Friday, which partly recovered falls that tested support at 0.7646 the previous day.

Before the moves sparked by the U.S. jobs figures, the Aussie had been trading within the 0.76770.7891 band since May.

The New Zealand dollar was 0.01 higher at 0.7213 in holidaythinned trade. After a volatile week, the kiwi is now also in the middle of its range of 0.7116 to 0.7316 since midApril.

SP Global Ratings upgraded its outlook on Australias coveted AAA sovereign rating to stable from negative citing the countrys swift economic recovery from the COVID19 pandemic driven recession.

The Australian dollar largely ignored the positive news but can build on Fridays gains against a heavy USD this week … because its fundamental drivers are elevated, Commonwealth Bank of Australia analysts said in a note.

For weeks analysts have noted the Australian dollar is not fully reflecting recordhigh commodity prices, as investors instead have looked at monetary policy expectations from the Reserve Bank of Australia.

Fridays sharp rebound means the commodity pricedrivenglobal rebound bull case lives to fight another day, said…

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