AUD/NZD Near Five Year Low at 1.08

Australia’s dollar held near the lowest in more than five years against its New Zealand peer before the bigger nation’s government releases a mid-year review economists say will show a widening budget deficit.

The Aussie traded within one cent of the three-year low of 88.48 U.S. cents reached in August, before Reserve Bank of Australia Governor Glenn Stevens testifies to the House Economic Committee tomorrow. Stevens last week marked out 85 cents as a level he’d prefer. New Zealand’s dollar was supported ahead of half-year economic, fiscal update today.

“Aussie-kiwi will get below NZ$1.08,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia. With regard to Steven’s testimony tomorrow, “what would be interesting if there is question asked of the governor on how we came up with the 85 cents that he mentioned the other day.”

Bloomberg

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