Australia, NZ dollars find some support, trend still down

According to Business Recorder, the Aussie and kiwi edged firmer on Wednesday and held above recent multi-month lows as a global bond market sell-off eased overnight. The Aussie was unchanged at $0.6982 after a 0.2% gain overnight, moving away from its 13-week low of $0.6904. Technically, the bearish trend would need a close above $0.7004 before it could be considered stabilised.

The kiwi held at $0.5623 after a 0.4% rebound overnight, though it has now fallen for six consecutive weeks. A slide below the 10-month low of $0.5581 would open the way toward $0.5485.

Markets now price a 25% chance that the Reserve Bank of Australia lifts rates again in November, following last week's increase to 4.60%. Minutes of the RBA's policy meeting on October 13 are expected to sound hawkish, as the board backed the move unanimously. Next week's September labour figures could shift the outlook, since many analysts view August's jump to a five-year high of 4.6% as statistical noise that may reverse. Citi's Josh Williamson expects another 25 basis point increase in November and a terminal rate of 4.85%.