WELLINGTON/SYDNEY: The Aussie and New Zealand dollars bounced back on Tuesday helped in part by demand from Japanese importers, though looming data on China's trade performance could prove a hurdle to further gains.
China's December trade figures due around 0300GMT with export growth expected to slow to 13.5 percent, the weakest in two years. Any disappointment could weigh on risk currencies and the Aussie is particularly sensitive to news out of China, its key export market.
The Aussie at $1.0265, from $1.0237 in New York, having fully recovered ground lost on Monday, but still a fair way off a two-month peak of $1.0387 hit last week.
Firmer Asian bourses and solid demand from Japanese importers following a long weekend, underpin the Aussie recovery in Asia.
Traders cite interest above $1.0280, with resistance at the 61.8 pct Fibo of the January fall at $1.0295. A sustained break would target $1.0387. Initial support at $1.0200.
The NZ dollar holds solid overnight gains, at$0.7881, from $0.7878 in New York. Within sight of last week's two-month peak of $0.7908, which is now a strong resistance level. Near-term support seen at $0.7840 and below that $0.7800.
Euro pauses at A$1.2445, having struck an all-time low of A$1.2408 on Friday. Technicals suggest the common currency's failure to recover A$1.2506 means the downtrend remains in place. Euro has lost nearly 2 pct this month.
Immediate support at A$1.2417, ahead of A$1.2304, the lower boundary of the 20-day Bollinger band.
The euro also hit a lifetime low against the kiwi after breaching support under NZ$1.6200 to stand at NZ$1.6139.
Against the safe-haven yen, Aussie nudges up to 78.70 , with kiwi bouncing to 60.54, nearly once yen higher from Monday's low.
The prospect of further Australian rate cuts, reinforced by Monday's disappointingly flat retail sales data, sees the Aussie-kiwi cross rate sitting around NZ$1.3000, a two-month low. Initial support seen around 200 moving day average at NZ$1.2968.
New Zealand building consents fall 6.4 percent in November, continuing the volatile nature of series, after a revised 10.7 percent rise the previous month.
Data also shows NZ housing market ended 2011 on a firm note with prices 2.4 percent higher than a year earlier, driven by a strengthening Auckland market. See
Approvals to build new homes in Australia jumped sharply in November in a partial recovery from two months of steep falls, offering hope the struggling sector might have finally hit bottom now interest rates are falling.
New Zealand government bonds mostly flat with a slight offered tone at the long end of the yield curve.
Australian bond futures extend losses, with the 3-year contract 0.03 points lower at 96.860 and the 10-year contract down 0.015 at 96.185.
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