Wednesday, 01 February 2012 10:33
WELLINGTON: The Australian and New Zealand dollars struggled to make much headway on Wednesday as the market locked in recent gains after both local and Chinese data failed to whet risk appetite in Asia.
The Aussie stood at $1.0615, barely changed from late New York levels, having retreated from a session high of $1.0640. Still, it has surged some 7.5 percent from a low of $0.9862 in December.
The pace and magnitude of recent gains as well as Europe's unresolved debt crisis could make the Aussie vulnerable to bouts of profit taking. Analysts at Barclays Capital said they expect the Aussie to retreat to $1.0300 in one month, but held on to a positive medium-term outlook.
Data on Wednesday showed manufacturing activity in both China and Australia improved in January. A key reading on US manufacturing is due later Wednesday.
However, they did little to alter views that Beijing will continue a pro-growth ...