The Australian and New Zealand dollars stayed under pressure on Monday with investors giving both high-beta currencies a wide berth as stocks markets across Asia fell on persistent worries about Europe's debt crisis.
In a blow to Greece's attempts to ease the terms of its bailout in the teeth of German opposition, the country's new prime minister and finance minister have taken ill, meaning they will miss an anxiously awaited summit of European leaders later this week.
The Aussie dollar slipped 0.3 percent to $1.0028, having touched a low of $1.0019. It remained within Friday's $1.0008/78 range in what traders describe as an inside-day, a phenomenon usually indicating a lack of market conviction. The New Zealand dollar eased 0.4 percent to $0.7868, pulling away from a seven-week high of $0.8017 struck late last week.
The Antipodeans also lost ground against the yen, with both the Aussie and kiwi shedding 0.6 percent to 80.40 and 63.06 respectively. They were little changed on a broadly softer euro. The Aussie was also steady against the kiwi at NZ$1.2736, holding off a six-week low around NZ$1.2682 hit last week. New Zealand government bonds traded largely flat, with yields unchanged across the curve.
Australian government bond futures firmed a touch, with the three-year contract up 0.02 points at 97.630 and the 10-year up 0.035 points at 96.990. "The AUD remains beholden to the ongoing European saga, with relatively large swings in the currency on the back of alternating sentiment. This pattern should continue in the very near term, as we head into the European Leaders' summit," said Emma Lawson, senior currency strategist at NAB.
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