The Australian dollar fell to eight-month lows against the greenback on Monday. The New Zealand dollar also dropped against its US counterpart to new one-year lows, as demand for the greenback remained supported by data showing that the U.S. economy grew at its fastest pace in two-and-a-half years in in the second quarter.
AUD/USD hit 0.8684 during late Asian trade, the pair's lowest since January; the pair subsequently consolidated at 0.8711, retreating 0.59%. The pair was likely to find support at 0.8685 and resistance at 0.8814, Friday's high.
NZD/USD hit 0.7709 during late Asian trade, the pair's lowest since August 2013; the pair subsequently consolidated at 0.7754, tumbling 1.41%. The pair was likely to find support at 0.7699 and resistance at 0.7961, Friday's high.
The U.S. dollar was strongly supported after the Commerce Department reported that U.S. gross domestic product was revised up to 4.6% in the three months to June from a previous estimate of 4.2%. It was the fastest rate of expansion since the fourth quarter of 2011.
The optimistic data added to the view that the strengthening economic recovery may prompt the Federal Reserve to raise interest rates sooner than markets are expecting.
The Aussie was also lower against the euro, with EUR/AUD gaining 0.61% to 1.4562.
Later in the day, the U.S. was to produce data on personal income and expenditure, as well as a private sector report on pending home sales.
