WELLINGTON/SYDNEY: The Australian and the New Zealand dollars gained early on Tuesday, bolstered by reports that officials are working on plans to recapitalise European banks raising hopes that a longer-lasting solution to the region's debt woes will be found.
* Aussie up over one pct to around $0.9830 from $0.9716 in late New York trade. It skidded to a 10-month low of $0.9622 overnight before recovering along with equities.
* Next support remains at the Sept. 23 low of $0.9621, then the 50 pct retracement of the year's low/high is at $0.9573, while resistance seen around $0.9867, then $0.9927.
* NZ dollar also firmer around $0.7800 early from $0.7713 in late NY trade. Kiwi, which shed almost 7 pct last week, may bounce back to test $0.7830, then $0.7893 while support still sitting around $0.7638.
* The euro recovers most of its losses after CNBC said European officials are working on a detailed plan to shore up European bank stability, including issuing bonds and using the proceeds to purchase debt of distressed European states.
* Equities rebounded on the report with Wall Street closing up to 2.7 percent higher. Gold and copper fell. The CRB index also gained 0.4 pct.
* Concerns about Greece's position and fears of default remain, with the finance minister due to hold a news conference at 0900 GMT Tuesday.
* The Antipodeans firmer on cross rates, after suffering major losses last week, with the kiwi holding around 59.55 yen , above a six-month trough of 58.21. The Aussie at 75.17 yen , off a 13-month low of 73.28 yen. Solid gains also against the euro.
* No major data due in NZ, Australia.
* Australian bond futures follow US Treasuries lower as appetite for risk improves, with the three-year contract down 0.12 points at 96.470. The 10-year dropped 0.115 points to 95.855.
* NZ government bonds also weaker with local yields 2.5 bps higher along the curve.
Copyright Reuters, 2011
Comments
Comments are closed for this article.