WELLINGTON/SYDNEY: The Australian and New Zealand dollars grudgingly gave ground to the greenback on Friday as upbeat US data lifted the US currency across the board, but they remained buoyant on the euro amid fresh bank worries in Europe.
The Aussie was stuck at $1.0251 in thin trading, having slipped 1 percent to an overnight low of $1.0232. It is now back to where it ended last week, having run into profit-taking at highs around $1.0386.
Key support is found at $1.0185, the 38.2 Fibo of the $0.9862/$1.0387 move and the 100-day moving average. Resistance is seen at $1.0300.
Dealers expected fairly contained trading ahead of key US non-farm payrolls data. Forecasts centre on a rise of 150,000, though the market is now looking for something stronger given recent upbeat US news.
The dollar index, which tracks its performance against a basket of major currencies, surged near a one-year peak at 80.903, boosted by a strong 325,000 rise in ADP jobs.
The NZ dollar hovered around $0.7814, having followed a similar path to the Aussie, down nearly one percent offshore to a low of $0.7794.
Euro was hit hard, once again, on fears about euro zone funding. It was struggling at A$1.2472, having struck fresh all-time lows in seven straight sessions to reach A$1.2438. It has lost 1.5 percent this week and dealers expect further damage given the state of Europe, on the brink of recession, and Australia which still riding a mining boom.
"Australia has a lot going for it. The trade data we saw yesterday showed a massive capital imports and I don't think anyone in the world has got an investment boom like Australia," said Annette Beacher, head of Australia and New Zealand research at TD Securities in Singapore.
On Thursday, Australia posted a healthy trade surplus of A$1.38 billion that will help offset global disruptions from the latest worries in Europe.
"All the good news is still coming from Australia, so I do expect the Aussie to keep outperforming," Beacher added.
Some traders, however, warned the rush into short euro positions was getting overcrowded and cautioned against a sharp reversal once the pattern.
Against the kiwi, the euro was last at NZ$1.6371, having slipped to a five-month low of NZ$1.6335. It has lost 1.6 percent this week.
"That is going to be a very, very rough quarter for every one in Europe with a sovereign credit rating under threat," said Alex Sinton, a senior dealer at ANZ Bank.
The Aussie also gained on the Swissy at 0.9761 Swiss francs , having scaled a fresh 11-month high of 0.9788 offshore. It has gained nearly 2 percept this week as investors pile on economies that seem sheltered from the euro storm.
Australian bond futures were mixed, with the 3-year contract up 0.01 point to 96.820 and the 10-year contract 0.015 lower at 96.140, in a steepening of the curve.
NZ government bonds gained with yields up to 0.02 points lower.
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