SYDNEY, April 23 (Reuters) - The Australian dollar
ran into technical chart resistance on Friday to slip to a
one-week low as reports U.S. President Joe Biden was planning to
nearly double capital gains tax on wealthy Americans hit risk
The Australian dollar went as low as $0.7693, a
level not seen since Apr. 14 as investors spooked by the
prospect of higher taxes drove to safe haven assets such as the
U.S. dollar, the Japanese yen and Treasuries.
The Aussie, which is often traded as a liquid proxy for
risk, is down 0.2% this week so far following two consecutive
weekly gains. It was last quoted at $0.7717.
"U.S. shares fell with the AUD losing ground in sympathy
after Biden announced plans to double capital gains tax for
people on incomes of more than $1 million," said Steven Dooley,
currency strategist for Western Union Business Solutions.
"The plans, widely discussed during the campaign, could have
a significant impact on the timing and tax implications of share
transactions," Dooley added.
The New Zealand dollar extended losses from
Thursday after the government said it intended to regulate bank
lending standards, traditionally the domain of the Reserve Bank
of New Zealand (RBNZ).
The kiwi went as low as $0.7151, a level not seen since Apr
19. For the week, the kiwi is a shade higher, on track for its
fourth consecutive weekly rise.
Next week, investors will watch out for first-quarter
consumer price data in Australia which is expected to show
inflation still undershooting the country's central bank's 2-3%
target despite hefty monetary and fiscal stimulus.
New Zealand government bonds eased, sending
yields about 2-3 basis points higher across the curve.
Australian government bond futures slipped too, with the
three-year bond contract down 2.5 ticks at 99.705. The
10-year contract was off 3.5 ticks to 98.31.
(Editing by Karishma Singh)