The Australian and New Zealand dollars faced declines as a result of the US inflation figures exceeding expectations, causing concerns about more rate hikes in the US. In addition, weak data from China, the largest export market for the Antipodean economies, added to a sense of fragility in the market.
The Australian dollar traded at $0.6325, after a 1.56% plunge overnight, remaining just above the 11-month low of $0.6287 reached earlier in the month. It has experienced a nearly 1% drop for the week, with substantial resistance at approximately 64 cents.
The New Zealand dollar was at $0.5919, reflecting a 1.5% overnight decline. Over the week, it is set to decrease by 1.2%, with support at $0.5860 and resistance near 60 cents.
The market had previously started to believe that US rates had peaked following dovish guidance from Federal Reserve officials, but the hotter-than-expected US consumer prices disrupted this sentiment. This development led to Treasury yields resuming their upward trajectory, and the US dollar maintaining its strength.
