SYDNEY/WELLINGTON: T he Australian dollar was languishing near multi-week lows against the greenback and yen on Thursday, with the New Zealand dollar not far behind, as gloomy news out of the euro zone and a drop in global shares weighed on risk sentiment.
* The Australian dollar at $1.0266, from $1.0271 in late local trade Wednesday, having slipped to a near three-month low of $1.0243 overnight. Support seen at $1.0230 and resistance at $1.0300.
* Aussie had already been struggling after poor trade data cast doubt on first quarter growth and narrowed the odds for a rate cut. On Tuesday, the Reserve Bank of Australia (RBA) said it could cut in May should coming inflation data prove benign.
* New Zealand dollar fares little better, settling at $0.8144 from Wednesday's $0.8262. It touched a one-week low of $0.8122 overnight.
* Kiwi support seen strongly at last week's low of $0.8117 with $0.8200 likely to cap the topside.
* Antipodeans set to consolidate in the absence of any local data as they go into the four-day Easter holiday. US non-farm payrolls on Friday the key event for both ahead of next week.
* The euro slides to its lowest level against the dollar in three weeks after European Central Bank President Mario Draghi says the euro zone economic outlook is subject to downside risks, leaving the door open for more policy action.
* The comments contrasted with minutes from the US Federal Reserve's March policy meeting that were seen by some as lessening the chance of more monetary stimulus.
* Euro was already under pressure after Spain's borrowing costs jumped at a bond auction, rekindling concerns about the region's fiscal woes.
* Investor risk aversion heightens as equity markets lose ground, bond yields decline, and commodity prices fall, raising demand for the so-called safe haven currencies. Wall Street's fear monitor, the volatility index, rises 5 percent, and commodities index falls nearly 1.9 percent.
* Antipodeans lose further ground against the Japanese yen, with the Aussie down 1.1 percent to 84.60 yen and the kiwi 1 percent lower at 67.14 yen.
* Aussie fares better against the euro, which edges back to A$1.2800 from the week's peak of A$1.2878.
* Aussie also finds its feet against the kiwi at NZ$1.2593 after dipping to a six-month low of NZ$1.2560 on Wednesday.
* Australian debt futures push higher, with the three-year contract indicated up 0.06 points to 96.640, and the 10-year contract up 0.050 points to 96.025.
* New Zealand government bond prices fractionally firmer, with yields 0.005 basis points lower along the curve.