WELLINGTON/SYDNEY: The Australian and New Zealand dollars struggled to make much headway against the greenback on Friday, although the pair held well off overnight lows in the wake of news Greece has reached agreement on an austerity plan.
Both the Aussie and kiwi bounced more than half a cent overnight after sources told Reuters Greece has won the consent of a team of EU-IMF inspectors for a new five-year austerity plan, committing to tax rises and spending cuts.
The Australian dollar last at $1.0526 vs $1.0521 late in New York, holding off a one-month low of $1.0455 struck offshore. But it is hemmed in a slim range between $1.0513 and $1.5051 so far this session.
The Aussie bounced off strong layers of support at $1.0440, while topside resistance is seen at $1.0570.
Reserve Bank of Australia's (RBA) Assistant Governor Philip Lowe speaks on inflation at 0345 GMT and could offer some clue on when rates might rise again.
The New Zealand dollar last trades at $0.8135, little changed from late New York levels, but well above the overnight low around $0.8082.
Support for the kiwi initially at $0.8100 and below that $0.8085, with resistance at $0.8155 and then $0.8180.
The Aussie manages a slight lift against the kiwi after having fallen to a 10-day low of NZ$1.2882. Last trading around NZ$1.2927.
No major data on Friday. The diary looks pretty bare next week for Australia, while in New Zealand, second-tier figures including trade, building consents, and business confidence are in the offing. NZ government debt gained as government debt supported by safety bid. Yields up to three basis points lower. Australian bond futures also higher, with the three-year contract up 0.04 points to 95.370 and the 10-year contract 0.035 points firmer at 94.930.
Copyright Reuters, 2011
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