WELLINGTON/SYDNEY: The Australian and New Zealand dollars pulled back to one-week lows against the US dollar, but gained on the euro on Thursday as renewed euro zone debt worries weighed on investors ahead of an Italian debt auction.
* Aussie at $1.0085 from $1.0162 in late local trade on Wednesday. It ranged between $1.0072 and $1.0202 overnight. Near-term support seen at $1.0051, the one-week low, with resistance seen at $1.0135.
* The kiwi dollar also knocked to around $0.7685 from $0.7745 on Wednesday, having traded between $0.7625 and $0.7781 overnight. Support at around $0.7653 and below that $0.7625, while around $0.7735 57 should limit topside.
* The euro falls to a 10-year low against the yen and close to its lowest in a year against the dollar as worries about euro zone banks increase, prompting investors to seek safety in other currencies.
* Markets spooked after data shows euro zone banks are still hoarding cash even after the European Central Bank provided nearly half a trillion euros worth of three-year loans at cut-rate prices.
* Optimism briefly lifted after Italy halved the price it pays for six-month loans, but then faded after the ECB report and as traders look ahead to Thursday's more challenging auction of three- and 10-year government debt.
* Risk aversion resurfaces with stocks falling and broad based-buying of US dollar and yen, while Treasury prices rise.
* Antipodeans firmer against the euro. The common currency falls to a record low against the Aussie of A$1.2763 before settling 0.4 percent lower at A$1.2814. Against the kiwi, euro touches a four month low before trimming losses to be NZ$1.6816.
* Pacific pair give ground to the yen on safety bid with the Aussie 0.5 percent lower at 78.61 yen and the kiwi 0.3 percent down at 59.90 yen.
* Year end market conditions and lack of liquidity also exacerbating moves, with minimal corporate transactions.
* Aussie debt futures firm with three-year contract up 0.02 points to 96.870, and the 10-year contract up 0.03 points to 96.210.
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