The Australian dollar stayed on the defensive on Tuesday as investors weighed the risk of further policy easing, including unconventional stimulus steps, while the New Zealand dollar drew support from upbeat local data.

The Aussie was stuck at $0.6776 having come within a whisker of breaching major support at the November low of $0.6770. A break there would likely see a relapse to at least the $0.6710/24 buffer zone.

The kiwi dollar again outperformed by holding at $0.6417, having found solid support at $0.6395.

That divergence saw the Aussie slip below its 200-day moving average against the kiwi to reach NZ$1.0560, near its lowest since late August.

The kiwi got a boost from data showing retail sales volumes surged a surprisingly strong 1.6% in the third quarter, thanks in part to spending on electronic gadgets.

Bond market bulls would also be pleased given the RBA would likely need to buy a sizable chunk of the relatively limited debt on issue. The three-year bond futures were firm at 99.265, having bounced from a low of 99.070 touched earlier this month. The 10-year contract edged up to 98.9100, implying an yield of 1.09%.