The Aussie and New Zealand dollars retreated modestly on Monday, pressured by weak stocks and global uncertainty, though upbeat economic data at home made it more likely than ever the Reserve Bank of Australia (RBA) would keep rates steady this week.
The Aussie eased to a one-week trough of $1.0570 as Asian stocks slid. It last traded at around $1.0590, more than a cent lower from Friday's high. Bond futures surged as investors favoured sovereigns with relatively little debt. The Australian three-year contract jumped 0.15 points to 96.290 and the 10-year climbed 0.18 points to 95.765.
The local currency has gained nearly 2 percent in the past month, having recovered from a brief fall below parity on August 9. It scaled a 29-year peak of $1.1081 late July.
Support for the Aussie is found at last week's $1.0561 trough, then at $1.0540 - the 50 percent retracement of the recent $1.0315/$1.0765 move. Resistance is seen at $1.0670.
Worries about international developments overshadowed a raft of encouraging data out of Australia showing firms enjoyed a healthy jump in profits last quarter as mining boomed. Moreover, a rapid rise in business inventories suggested economic growth could have outstripped expectations in Q2. The Antipodeans were under pressure against the safe-haven yen, diving to one week-lows. The Aussie last stood at 81.28 yen, and the kiwi at 64.76 yen.
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