Australian and New Zealand dollars steady

11 Dec, 2012

The Australian and New Zealand dollars held near one-month highs against the euro on Monday as political uncertainty in Italy weighed on the common currency. The Antipodean currencies were steady against the US dollar, undeterred by China's weaker-than-expected trade figures as investors focussed on Beijing's strong weekend data which provided further signs of economic recovery.
The euro slid as far as A$1.2278 in early trading, its lowest since November 20, before popping back above A$1.2300. It was last at A$1.2312, having lost around 2-1/2 cents in one week. Against the kiwi, the euro edged down to NZ$1.5480, after dipping to NZ$1.5463, its lowest since November 13 in early trade. The kiwi has gained more than 2 percent on the single currency so far this month.
The New Zealand dollar stayed firm, touching a session high of $0.8340, and in sight of last week's two-month high of $0.8349 reached after a stronger-than-expected central bank rate statement. The kiwi also drew support from dairy exporter Fonterra's announcement that it was raising its forecast payout by around 4 percent because of stronger prices and an expectation they will keep rising. The currency last traded at around $0.8330, but was seen poised to challenge the September high of $0.8357, which would take it back to levels seen in early March.

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