SYDNEY, Jan 29 Reuters The Australian and New Zealand dollars were catching their breath on Friday after recovering from a sickening slide the previous session, although both were nursing losses for the week.
The Aussie held at 0.7667, having dived as deep as 0.7592 overnight before rebounding as the markets fickle mood swung back toward risk assets.
The bounce took the currency back above chart support around 0.764550 but left it down 0.6 on the week so far and well short of the weeks 0.7764 peak.
The kiwi dollar had an equally wild ride to stand at 0.7165 after sliding as far as 0.7106 at one stage overnight. Again it was well off the weeks top of 0.7246, but did avoid a damaging breach of support at 0.7097.
The Aussie was undermined in part by a sharp fall in prices for iron ore, Australias single biggest export earner, as Beijing talked about restraining steel production this year.
It faces homegrown risks next week when the Reserve Bank of Australia RBA holds its first policy meeting of the year with most analysts tipping it will recommit to keeping rates at record lows for three more years.
Most also expect the central bank to extend its A100 billion 76.75 billion bond buying program, though the actual announcement might not come until March or April.
Extending their bond buying program is the path of least regret, said CBA senior economist Gareth Aird.
It will ensure that their policy decisions do not put any undesired upward pressure on the Australian…