The Australian and New Zealand dollars held firm on Tuesday, underpinned by talk a coming jolt of bank liquidity in Europe could bolster risk appetite, though their near four-week rally against the yen faced a setback as profit-takers emerged.
The Aussie was taking a breather at $1.0770, after jumping a cent on Monday thanks in part to month-end demand. Resistance is seen at $1.0800 and the February 8 peak of $1.0845. A break there could open the way up to $1.1000 and the post-float high at $1.1081 set last year.
The kiwi slipped 0.5 percent to 67.34 yen, pulling back from a near seven-month high around 68.25 yen hit Monday. On the greenback, it was at $0.8398, hovering within reach of a near six-month high of $0.8429. The euro struggled to make any headway against Antipodeans following a sharp pullback overnight. It fetched A$1.2460 and NZ$1.5977, off an 8-week peak of A$1.2617 and a five-week high of NZ$1.6138. Investors are awaiting the outcome of the European Central Bank's latest offer of three-year funds (LTRO) on Wednesday.
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