Wednesday, 12 October 2011 09:36
SYDNEY/WELLINGTON: The Australian and New Zealand dollars drifted lower on Wednesday, weighed by a softer tone in stocks and commodities, as investors turned cautious after Slovakia rejected a first vote to expand the euro zone rescue fund.
Aussie eases to $0.9876, from $0.9953 in New York, having failed to hold near parity levels of Tuesday following a risk rally.
It breached the 20-day MA support at $0.9890 and looks set to test $0.9868, the 23.6 pct retracement of the $0.9388-$1.0016 move. Stiff resistance at the broken trend line on its weekly charts around $1.0010-30.
Still, the Aussie up 5 pct since hitting a 13-month low of $0.9388 last week on global gloom.
NZ dollar gives further ground slipping to $0.7751 just above its overnight low. It had hit a two-week high of $0.7857 on Tuesday.
Kiwi support at $0.7715 and below that $0.7670, with $0.7840 the first hurdle higher.
Risk sentiment tainted following disappointing ...