SYDNEY/WELLINGTON: Expected monetary easing in Europe gave the US dollar a boost on Monday and the Australian and NZ dollars remained under pressure in thin trading.
The Australian dollar dropped to a 5-1/2-year trough of $0.8053, as the US dollar gained most from a sharp decline in the euro.
The Aussie was at $0.8086 at 0205 GMT, with technicals pointing to further downside. Key support was seen at 80 cents, then $0.7945 which is the 61.8 percent retracement of the $0.6007-$1.1081 rise. The Aussie tumbled 8.5 percent last year and has lost nearly 1 percent in 2015.
The New Zealand dollar plumbed a one-month trough of $0.7653, to be at $0.7670 at 0205 GMT. In the past, quantitative easing “was positive for the kiwi because it was positive for risk appetite but today QE in Europe and QE in Japan is positive for the US dollar and therefore negative for the kiwi,” BNZ currency strategist Raiko Shareef said.
The kiwi could be dragged back towards a 2-1/2-year low of $0.7609 hit last month if the euro continues to fall in illiquid markets. A break of $0.7600 would open the door to key $0.7450/7500 support.
Not helping euro sentiment was renewed speculation about the possible exit of Greece from the single currency. As a result, the euro shed a cent and a half to hit a one-month low of A$1.4719 at one stage, to be at A$1.4779 as 0212 GMT.
Against the kiwi, the euro briefly touched a 5-1/2-month low around NZ$1.5459 but recouped its losses to be at NZ$1.5585.
The Antipodeans also rose against a soggy pound after weak U.K. economic data diminished prospects of an early 2015 rate hike by the Bank of England.
