BLBG:Aussie, Kiwi Decline to One-Week Lows on Concern Euro Crisis Will Continue
The Australian and New Zealand dollars fell to one-week lows on speculation a European summit will fail to push the region’s debt crisis toward a resolution, damping demand for higher-yielding assets.
The so-called Aussie and kiwi headed for weekly declines after European Central Bank President Mario Draghi said he hadn’t signaled stepping up bond purchases to spur growth. European leaders battled into the night at the summit to halt two years of debt-driven turmoil in financial markets and dispel concerns the euro is on the brink of unraveling.
“The market continually sets itself up for disappointment from these summits,” said Derek Mumford, a Sydney-based director at Rochford Capital, a currency-risk management firm. “With the Aussie dollar, we see anything over $1.0250 up to $1.04 as selling opportunities.”
The Australian dollar declined 0.6 percent to $1.0102 as of 2:39 p.m. in Sydney, after touching $1.0093, the lowest since Nov. 30. It’s poised for 1.2 percent drop this week. The Aussie fell 0.7 percent to 78.42 yen.
New Zealand’s dollar retreated 0.8 percent to 76.68 U.S. cents, after sliding to as low as 76.61, also the weakest since Nov. 30. The kiwi was set for a 1.4 percent weekly loss. It slid 0.8 percent to 59.52 yen.
To contact the reporter on this story: Mariko Ishikawa in Tokyo at mishikawa9@bloomberg.net
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net
