Australia, NZ dlrs jump vs sterling amid Brexit turmoil
By Swati Pandey
SYDNEY, Nov 16 (Reuters) - The Australian and New Zealand
dollars were set for their best weekly performance in nearly a
year against sterling as political turmoil in Britain fanned
fears the country could crash out of the European Union without
a divorce agreement.
Against the Aussie, the pound held near a 2-1/2
month trough at A$1.7593, after posting its worst daily
percentage decline since August 2016 on Thursday.
The currency is down about 2 percent for the week so far,
the biggest weekly fall since December 2017.
Against the New Zealand dollar, the pound hovered
near 10-month lows touched on Thursday when it tumbled 2 percent
for its weakest single day performance since Britain's vote to
leave the EU in June 2016.
Sterling is on track to post its six straight weekly decline
against the antipodean currencies.
The losses came overnight after a series of resignations
threatened British Prime Minister Theresa May's government and
cast a cloud over her much awaited Brexit deal only hours after
the draft agreement was unveiled.
Analysts expect market gyrations to continue.
"It is hard to say where we head from here but we are set
for a volatile few weeks," said Daniel Been, head of forex
research at ANZ.
The Aussie fared well elsewhere, too.
Against the U.S. dollar, it managed to hold on to
gains made earlier this week. The currency was last at $0.7266
after repeatedly failing at key chart resistance of $0.7300.
The Aussie is up 0.5 percent this week, on track for its
third consecutive weekly rise.
Most of those gains came on Thursday after robust employment
data showed 32,800 new jobs were created in October, handily
beating market forecasts of 20,000.
Investors still expect the Reserve Bank of Australia (RBA)
to keep interest rates at a record low 1.50 percent in the near
term as inflation is still tepid and wage growth is low.
The kiwi held near a 4-1/2 month top against the
greenback at $0.6822. It broke above key barrier of $0.6820 to
climb to a high of $0.6841.
For the week, the kiwi has so far risen 1.3 percent and was
set for its third straight weekly gain.
(Editing by Kim Coghill)
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