SYDNEY/WELLINGTON: The Australian and New Zealand dollars moved higher on Monday, tracking a bouncy euro, after Germany and France promised a new plan to recapitalise euro zone banks, though markets remain wary as they have been disappointed before.
Aussie grinds up to $0.9840, from $0.9759 in NY. It hit a 12-day high of $0.9879 on Friday before succumbing to news of ratings downgrades for Italy and Spain. It last traded at $0.9833.
Near term minor support around $0.9723 and $0.9630, while resistance at $0.9879.
The NZ dollar gains half a cent to $0.7740, from $0.7697 in New York, having struck a 10-day peak of $0.7799 on Friday. Support at $0.7626, then $0.7600, with $0.7830 likely capping the topside.
Kiwi still choppy, following euro-crisis driven roller coaster ride last week. Markets pricing for rate outlook little changed, with 8 pct risk of a cut this month and 28 basis points of hikes over the next 12 months.
The Aussie also higher on the kiwi, holding around NZ$1.2698 from last week's low of NZ$1.2492 .
Risk sentiment lifted after a Franco-German meeting, though it offered no details. A pledge to do what is necessary to shore up banks, settle the Greek crisis and help growth in Europe, gives a boost to risk sentiment.
Euro's steady rise in early Asia drags Antipodeans higher, while Asian stocks jump. S&P futures, Australian, Korean and Singaporean shares up by more than 1 pct.
Australian job ads in newspapers and on the internet fell for a third month in September, according to a private survey, pointing to a further softening in employment and adding to the case for an easing in interest rates.
The central bank opened the door to possible rate cuts last week, citing slower global growth and downward revisions to inflation.
Interbank futures have been pricing aggressive cuts, implying a total of 59 bps of cuts by December.
Euro near two-week lows at A$1.3668 against the Aussie. It eases to NZ$1.7344 on the kiwi.
No major NZ data on Monday, while government finances due Tuesday, with deficit likely to be boosted by Christchurch earthquake. ANZ says in a report its monthly inflation gauge steady in September, after a 0.4 pct dip in August.
NZ government debt fell, following US Treasuries fall on US job data, sending local yields around 3 basis point higher.
Australian debt also down, with three-year futures contract easing 0.07 points to 96.340 and the 10-year off 0.085 points to 95.665.
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