SYDNEY/WELLINGTON: The Australian and New Zealand dollars struggled to hold modest gains on the greenback early on Tuesday as speculation of more easing in the United States was offset by concerns over Chinese inflation.
* Markets await a speech by Federal Reserve Chairman Ben Bernanke on "Fostering Financial Stability" at 2315 GMT in Atlanta. See also
* The Australian dollar around $1.0310 early, after climbing to $1.0333 in NY from $1.0302 in late offshore trade on Friday. Local markets were closed on Friday and Monday for the Easter holidays.
* Support seen at April 5 low of $1.0253 and resistance at $1.0345, a 10-day MA, then $1.0415.
* Aussie plumbed a three-month low of $1.0240 last week, with poor domestic trade data casting doubt on first-quarter growth and narrowing the odds for a rate cut.
* In contrast, a surprisingly high reading of 3.6 pct on Chinese inflation seemed to deal a setback to hopes for more easing there.
* NZ dollar also off high, holding around $0.8217 after reopening from a long weekend. It hit $0.8238 overnight from $0.8210 in late NY on Friday.
* Kiwi likely consolidating between $0.8205 and $0.8248, with strong resistance at $0.8270, the high on March 20.
* Australia has data on job advertisements and the NAB business survey later Tuesday.
* Euro higher against the dollar and the yen, as weak US jobs data keeps alive bets of more easing from the Federal Reserve.
* Most major Wall Street firms expect anaemic growth in the US jobs market and a struggling economic recovery to force the Federal Reserve to undertake another round of monetary stimulus, a Reuters poll showed.
* Antipodeans soft against the Japanese yen, with the Aussie easing to 84.00 yen from overnight high of 84.34 and the kiwi lower at 67.01 yen from 67.24.
* Risk sentiment cautious, with Wall Street faltering and the CRB commodity index down 0.5 pct. Gold rose, while copper and oil fell.
* Australian debt futures push higher along with Treasuries, with the three-year contract indicated up 0.02 points to 96.610, and the 10-year contract up 0.030 points to 96.025.
* NZ government bond prices also firmer, with yields 0.045 bps lower along the curve.
Comments
Comments are closed.