If you enjoy the content at iBankCoin, please follow us on TwitterAustralia’s bonds rose and the nation’s currency touched its lowest level in six months as concern that Spain will struggle to rescue its banks curbed demand for assets linked to growth.
Yields on all government debt maturing in two years or longer fell to records before a report that may show growth in building permits slowed in April, giving the Reserve Bank more scope to lower borrowing costs. New Zealand’s currency, nicknamed the kiwi, headed for its worst monthly loss since September against the U.S. dollar as Asian stocks retreated.
“Spain is becoming a huge problem,” said Derek Mumford, a director in Sydney at Rochford Capital, a currency risk management company. “A lot of money is going to be needed to bail them out. The Aussie will inevitably be dragged down to a very important support area at 94.50 to 95 cents.” Support is an area on a chart where orders to buy may be clustered.