WELLINGTON/SYDNEY: The Australian and New Zealand dollars retreated modestly on Monday, pressured by weak stocks, disappointing US economic data and renewed concerns about European debt woes.
The Aussie eases to $1.0590, more than a full cent lower from Friday's high. Support seen at last week's $1.0561 trough, then $1.0540 -- the 50 pct retracement of the recent $1.0315/$1.0765 move. Resistance at $1.0670.
NZ dollar down about half a cent at $0.8432 from New York close on Friday. Strong support seen around the $0.8400 psychological level, with resistance hovering around $0.8510.
Sharply weaker Asian stocks and commodities weighing on the Antipodeans as worries about euro zone debt and weak US jobs data hit appetite for riskier assets.
Hong Kong, Korea and Australian shares tumble more than 2 pct, while copper sheds nearly 1 pct. Iron Ore , though, Australia's top export, scaled a fresh 4-month peak.
Aussie, kiwi dive to one week-lows against the yen. Aussie last at 81.30 yen , kiwi at 64.70 yen .
Worries about offshore developments overshadow latest encouraging data out of Australia. Q2 business inventories rose 2.5 pct, beating forecast for a 0.4 pct increase, while company gross operating profits grew 6.7 pct, more than twice what analysts expected.
Australian job ads in newspapers and internet fell slightly for a second straight month in August, though they remained higher than in the same period last year, a private survey showed on Monday.
Official Australia jobs report due on Thursday with forecast centering on a modest rise in employment.
The central bank holds its monthly meeting on Tuesday and is considered almost certain to keep rates at 4.75 percent, in part because turmoil on global markets has dimmed the outlook for domestic demand and may help restrain inflation.
Investors still pricing in a small chance of a cut this week and a total of 81 basis points of easing by Christmas.
Rate outlook in New Zealand remains benign, with markets only implying a 20 pct chance of a hike next week and 43 bps of tightening over the next 12 months, a touch softer from last week, weighed by uncertain global outlook.
NZ data calendar light this week with wholesale, manufacturing, and building data -- the final pieces of the Q2 GDP jigsaw -- and monthly electronic card sales.
NZ government bonds firmer in line with US Treasuries, with local yields as much as 9 basis points lower.
Australian bond futures gain, with the 3-year contract up 0.15 points at 96.290 and the 10-year 0.14 points higher at 95.720.
Copyright Reuters, 2011
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