WELLINGTON/SYDNEY: The Aussie and New Zealand dollars got off to a rocky start on Monday on a broadly stronger greenback and weaker-than expected retail sales in Australia, but were holding firm against the euro ahead of debt auctions later in the week.
The Aussie at $1.0168, from $1.0229 in New York on Friday, well off a two-month high of $1.0387 struck last week. Support at $1.0125, the 21-day MA, ahead of key barrier at $1.0088, the trendline from Nov 2011 low. Resistance at $1.0300.
Local currency briefly dipped to a session low of $1.0150 following a flat retail sales reading for November, vs an expected rise of 0.3 pct.
Weaker data does not change market expectations of more rate cuts. Interbank futures fully price an easing of 25bps by March to 4 pct and a total of 89.5 bps in cuts by June.
The Reserve Bank of Australia will hold its next policy meeting on Feb. 7.
Asian stocks weigh on Antipodeans with Kospi down 1.3 pct. S&P futures also 0.5 pct lower.
The NZ dollar subdued at $0.7788, from $0.$0.7810 in New York on Friday. Near-term support seen at $0.7760 with resistance at $0.7840.
Aussie finally showing early signs of fatigue against the euro at A$1.2474. Traders said a move above Friday's high at A$1.2505 after eight days of lower daily highs could perhaps be the first indication of a corrective bounce.
Euro had lost 1.5 pct last week to fresh all-time lows of A$1.2438. Against the kiwi, it was at NZ$1.6270, having earlier slipped to a fresh five-month low of NZ$1.6256.
Earlier, the dollar index surged to 81.490, its highest since Sept 2010, after a robust US nonfarm payrolls report, highlighting the diverging growth outlook between the United States and Europe.
NZ posts NZ$308 million ($239 million) trade deficit in November, fourth consecutive monthly shortfall. That narrowed the annual surplus to NZ$555 million, half the level of a year earlier. See
Other NZ data due this week includes commodity prices, housing sales and building approvals.
NZ government bonds flat, but short term interest rate futures weaker.
Australian bond futures gain, with the 3-year contract 0.05 points higher at 96.890 and the 10-year contract up 0.04 at 96.185.
Copyright Reuters, 2012
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