Australia, NZ dlrs Hit by U.S. Capital Tax Doubling Plan

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SYDNEY, April 23 Reuters The Australian dollar ran into technical chart resistance on Friday to slip to a oneweek low as reports U.S. President Joe Biden was planning to nearly double capital gains tax on wealthy Americans hit risk appetite.

The Australian dollar went as low as 0.7693, a level not seen since Apr. 14 as investors spooked by the prospect of higher taxes drove to safe haven assets such as the U.S. dollar, the Japanese yen and Treasuries.

The Aussie, which is often traded as a liquid proxy for risk, is down 0.2 this week so far following two consecutive weekly gains. It was last quoted at 0.7717.

U.S. shares fell with the AUD losing ground in sympathy after Biden announced plans to double capital gains tax for people on incomes of more than 1 million, said Steven Dooley, currency strategist for Western Union Business Solutions.

The plans, widely discussed during the campaign, could have a significant impact on the timing and tax implications of share transactions, Dooley added.

The New Zealand dollar extended losses from Thursday after the government said it intended to regulate bank lending standards, traditionally the domain of the Reserve Bank of New Zealand RBNZ.

The kiwi went as low as 0.7151, a level not seen since Apr 19. For the week, the kiwi is a shade higher, on track for its fourth consecutive weekly rise.

Next week, investors will watch out for firstquarter consumer price data in Australia which is expected to show inflation still…

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