The Australian and New Zealand dollars struggled against a broadly stronger greenback on Tuesday, but held near 2-1/2 month highs against the euro after Greece failed to receive an immediate financial aid it was counting on. The euro dipped to a two-month low against the dollar after the euro zone and the International Monetary Fund clashed over a long-term plan to reduce Athens's debt pile.
It also dragged the common currency lower against the Aussie. The euro last fetched A$1.2186, having touched A$1.2166 on Monday, its weakest since late August. Likewise against the kiwi, the euro slipped to NZ$1.5522, within reach of a 2-1/2 month trough of NZ$1.5380 set last week.
The euro has lost more than 5 percent against the Aussie in a month with key support seen around $1.2066, the 61.8 percent retracement of the August-October rally. "The Australian economy is doing well, China is picking up while Europe is in recession," said Peter Pragicevich, a strategist at Commonwealth Bank of Australia. The Antipodeans retreated against their US counterpart as the uncertainty surrounding Greece's ongoing debt drama weighed on risk appetite.
The Aussie dipped to $1.0402, from $1.0426 in New York, retreating from a seven-week peak of $1.0480 touched last week. The New Zealand dollar shed 0.2 percent on the day to $0.8160, getting closer to a two-week low of $0.8123 struck late last week after a poor job report.
Comments
Comments are closed.