A$ & NZ$ hold hefty gains, A$ tackles parity

SYDNEY/WELLINGTON: The Australian and New Zealand dollars held and consolidated hefty gains on Tuesday, after a Franco-German pledge to tackle euro zone debt woes sparked a broad bounce in risk assets.

Aussie at $0.9974, up 1.3 pct since late local trade on Monday. It briefly pierced parity to $1.0016 overnight. Near term support around $0.9879, while resistance at $1.0034.

Aussie has now risen some 6.3 pct since hitting a 13-month low of $0.9388 last Tuesday on global gloom.

The NZ dollar at $0.7814, after jumping more than 1 cent to a two-week high of $0.7857 in overnight trade.

Kiwi near term support at $0.7795 with $0.7857 seen the first hurdle higher, and a revisit to the 200-day moving average at $0.7958 is possible if $0.7890 is broken.

Kiwi has gained nearly 5 pct since it struck a 6-month trough of $0.7470 last week.

Antipodeans mark time following an overnight rally that sent commodities, stocks and high yielding currencies sharply higher.

Regional stocks opened firmer in Asia, though S&P futures slightly down 0.1 percent.

Risk sentiment further supported following an HSBC report suggesting Asia's trade volume will almost double to nearly $14 trillion by 2025, despite current global economic headwinds.

Aussie is very sensitive to news out of Asia, as China is its key export market.

Antipodeans hold overnight gains made on the safe-haven yen. Aussie at 76.45 yen, near two-week highs, while kiwi stands at 60 yen , near a one-week peak.

The Aussie at $1.2739, just under a 10-day high struck on Monday against the kiwi.

Australian business confidence rebounded in Sept as a drop in the Aussie and talk of lower interest rates helped sentiment, while sales and employment staged a welcome pick up, a survey showed on Tuesday.

NZ government's budget deficit for the 2010/11 fiscal year blew out to a bigger than expected NZ$18.4 billion, 10 percent worse than forecast, driven by extra earthquake costs. Borrowing a touch below forecast. Finance Minister recommits to achieving budget surplus in 2014/15. See

NZ electronic card spending rises less than expected in September, up 0.4 percent against a 1 pct rise forecast. Data suggests not much of a lift in retail spending from Rugby World Cup. See

NZ government debt softens as improved risk appetite reduces the safety bid, sending local yields up to 5.5 basis point higher.

Australian debt also down, with three-year futures contract off 0.05 points to 96.290 and the 10-year off 0.04 points to 95.635.