Aussie dollar last at $1.0440 vs $1.0471 late in New York and off this week's high of $1.0535 set on Tuesday. It touched a session low around $1.0429 after sell-stops were triggered below $1.0450, traders say.

The currency flirting with 10-day moving average at $1.0446, then $1.0315, the Aug. 19 low.

Gains in Asian stocks fail to whet appetite for commodity currencies.

Markets seem to be holding back in the run-up to a speech by Fed Chairman Ben Bernanke in Jackson Hole on Friday, with doubts creeping in whether there will be any hints of further measures to bolster the US economy.

Against the kiwi, the Aussie trades at NZ$1.2615, holding well-off a one-year trough of NZ$1.2305 struck earlier in the month.

The NZ dollar slips to $0.8273, reversing a move up to $0.8298 in the wake of better-than-expected retail sales data.

The figures failed to provide a longer-lasting boost to the kiwi as markets still see little chance of a rate hike next month because of the uncertain global outlook.

New Zealand government bonds also weaker, sending local yields a tick or two higher. Swap yields up to 5 bps higher across the curve, betting on a higher chance of a rate increase at some stage in the next few months.

Australian bond futures lower, tracking US Treasuries, with the 3-year contract 0.12 points lower at 96.190 and the 10-year down 0.065 points at 95.575.

Gold steadier, having stolen the show overnight as futures suffered their biggest daily drop since 1980 as investors took profits in what had become a very crowded trade. Likewise, profit-taking swept through long Treasury positions and pushed 10-year yields up 14 bps.

Yet there was no obvious improvement in risk sentiment, suggesting the moves were more to do with extended positioning than anything fundamental.

Copyright Reuters, 2011