Australia’s
dollar headed for a fourth weekly decline versus its U.S. peer as traders
weighed the timing of a reduction in Federal Reserve stimulus that has buoyed
asset prices around the world.
The
Aussie fell for a fifth day in six yesterday after Fed Vice Chairman Janet
Yellen said quantitative easing “will not continue indefinitely.” The currency
traded within 0.5 percent of an eight-week low before the Reserve Bank of
Australia releases minutes of its November meeting next week. Australia’s
benchmark 10-year bond yield rose for a third week after touching the highest
level in 20 months. New Zealand’s dollar was set for its first weekly advance
in four.
“Tapering’s
going to happen, and there’s a possibility, -- low as it might be -- that it
will happen in December,” said Hans Kunnen, a senior economist at St. George
Bank Ltd. in Sydney. “Medium term, Aussie is going lower.”
The
Australian dollar slipped 0.1 percent to 93.10 U.S. cents as of 10:55 a.m. in
Sydney from yesterday, when it dropped 0.5 percent. It has declined 0.8 percent
this week, after touching 92.69 on Nov. 12, the lowest since Sept. 16.
New
Zealand’s dollar was little changed at 82.73 U.S. cents, heading for a 0.2 percent
weekly advance.
The
yield on Australian 10-year government debt fell two basis points, or 0.02
percentage point, to 4.18 percent. It touched 4.3 percent on Nov. 13, the
highest since March 2012. Yields have risen five basis points this week, adding
to 16 basis point climb from Oct. 25 to yesterday.
(Source: Bloomberg)