“Australia’s dollar fell against its U.S. counterpart, trimming a weekly gain, after service-industry indexes in the South Pacific nation and China declined.
Australian bonds dropped, pushing benchmark 10-year yields to the highest in more than four months after gains in Asian stocks curbed demand for haven assets. The so-called Aussie and New Zealand’s dollar were supported against the yen amid speculation the Japan’s central bank will boost stimulus to weaken its currency.
“The Aussie is looking a bit overvalued,” said Masashi Murata, a currency strategist in Tokyo at Brown Brothers Harriman & Co. “The risk scenario for the Aussie is for the recovery in the Chinese economy to halt and Australia’s domestic demand to deteriorate.”
The Australian dollar fell to $1.0441 as of 4:25 p.m. in Sydney, down 0.2 percent from yesterday and poised for a 0.7 percent gain this week. It climbed 0.4 percent to 91.66 yen from yesterday, when it touched 91.76, the highest since September 2008.
New Zealand’s dollar, known as the kiwi, dropped 0.4 percent to 82.47 U.S. cents from yesterday, paring its gain since Dec. 28 to 0.6 percent. It rose 0.2 percent to 72.39 yen…”
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