Australia dollar set for longest weekly winning streak since 2020

Business Recorder reported that the Australian dollar was on course for its longest run of weekly gains since 2020 on Friday, after a surprise US Treasury buyback plan did little to steady bond markets. The Aussie climbed 0.3% to $0.7134, its strongest level in 11 weeks, lifting its weekly advance to 0.7%. The currency is set for an eighth consecutive weekly rise, leaving it nearly 4% above its June low.

The New Zealand currency rose 0.4% to $0.5968, its best level in almost 12 weeks, and was set for a 1.3% weekly gain. Traders are watching former peaks of $0.7200 and $0.7277 for the Aussie, while the next resistance for the kiwi sits at a double peak of $0.5993. The US dollar lost ground broadly as worries over US debt and policy grew. Westpac chief economist Luci Ellis expects more US Treasury interventions but calls them stop-gaps, and she sees some shift out of US dollar assets as increasingly feasible.

Demand for Australian debt was firm as well. The government sold a 2038 bond raising A$13 billion ($9.2 billion) at a 5.17% yield, with A$61.97 billion in bids, while Alphabet raised A$5.5 billion on orders above A$18 billion. Weaker than forecast wages and jobs data have left markets betting the Reserve Bank of Australia holds rates at 4.35% in September, with a 13% chance of a hike to 4.6% next month.