SYDNEY, Nov 13 (Reuters) - The Australian dollar slipped to
a more than one-week low on Friday, while its New Zealand peer
was toppled off a 19-month peak as investors dumped perceived
riskier currencies on renewed worries about the health of the
The Australian dollar, often played as a liquid
proxy for risk, went as deep as $0.7242, a level not seen since
For the week, the Aussie is on track for a small loss,
eroding some of the hefty gains made the week before.
The New Zealand dollar stumbled to $0.6823
from$0.6915 touched on Thursday, a level last seen in March
But for the week, the kiwi is still up 0.8% and on track for
its second consecutive gain as markets pared the chance of
negative interest rates in the country.
Risk assets were pulled lower overnight by concerns that
successful tests of a COVID-19 vaccine may not be enough to
offset the economic damage wrought by the pandemic.
Uncertainty around Australia's relationship with China is
another headwind for the Aussie after the Asian giant suspended
imports of all timber from Victoria state.
China has already announced restrictions on other Australian
imports including wine, coal, barley, copper ore and
concentrate, sugar, and lobsters.
"Trade tensions between Australia and China are a downside
risk to our forecast for AUD to lift to 0.75 by the end of the
year. A slowing global economy is another risk," said Kim Mundy,
senior strategist at Commonwealth Bank of Australia.
Next week, all eyes will be on a dinner speech by Reserve
Bank of Australia (RBA) Governor Philip Lowe on Monday.
The focus will also be on the labour market with three
separate data releases - fortnightly payrolls figures which has
been showing some weakness lately is due Tuesday, third-quarter
wage price index on Wednesday and employment data for October on
Government bond prices got a boost from safe-haven demand on
New Zealand government bonds rose, sending yields
about 3-4 basis points lower across the curve.
Australian government bond futures were mixed, with the
three-year bond contract flat at 99.825 and the 10-year
contract rose 3 ticks to 99.115.
(Editing by Rashmi Aich)