Australia, NZ dollars tumble to multi-week lows, bonds battered

The Australian and New Zealand dollars stayed near multi-week lows on Thursday, according to Business Recorder, after strong United States economic figures lifted the greenback against most major currencies. A fresh rout in global bonds also pushed yields to 15-year highs, adding pressure on risk assets.

Australia's jobless rate unexpectedly rose, even though employment grew by 39,500 in August against forecasts of 20,000 gains. The Aussie, already 1 per cent weaker overnight, slid to $0.7025, a seven-week trough, and the report says the technical picture has turned bearish with downside risk toward $0.6920 and $0.6866. The kiwi was pinned at $0.5676, and a test of the June low at $0.5627 looks likely.

Market pricing implies a 95 per cent chance the Reserve Bank of Australia lifts its cash rate by 25 basis points to 4.60% on September 29, with a possible peak of 5.10%. Odds of an October hike from the Reserve Bank of New Zealand have risen to 87% from 20% two weeks earlier. Australian three-year bond futures dropped 15 ticks to 94.900, their lowest since mid-2011.