Aussie & NZ dollars off highs, stuck in Greek limbo

WELLINGTON/SYDNEY: The New Zealand and Australian dollars marked time on Tuesday just below recent highs as markets waited, and waited, for the outcome of a meeting to seal a second bailout package for Greece.

* The Aussie at $1.0750 against Monday's late local level of $1.0769. In subdued trading overnight it ranged $1.0747 to $1.0796, after it had reached a one-week high of $1.0817.

* Aussie still seen headed higher, but local trade likely to see more restrained range with $1.0720 offering support and the Feb. 9 high of $1.0825 capping the topside. However, break of the 2012 high of $1.0845 could open up the way for a re-test of the 29-year peak of $1.1081 set last July.

* The New Zealand dollar around $0.8387 compared with $0.8405 in late local trade on Monday. It had reached a near six-month high of $0.8429, boosted by China's policy easing and a decision by Japan's biggest mutual fund to add NZ assets to its portfolio for the first time.

* Kiwi support seen at $0.8370 with the first line of resistance seen around $0.8420 ahead of more stern hurdle at $0.8460. The US holiday overnight is seen dampening activity.

* The euro rises in Europe amid hopes that euro zone finance ministers will approve a second bailout of 130 billion euros for Greece, but with risks still present about its implementation.

* The Antipodeans trim their gains on the yen, which had seen them hit levels on Monday not visited since July/August. The Aussie edges back to 85.48 yen from 86.34 yen. The kiwi around 66.72 yen after it had hit a 6-1/2-month high around 67.29 yen.

* The Aussie underperforms the kiwi easing back to NZ$1.2805 well off last week's high of NZ$1.2931.

* Reserve Bank of Australia releases minutes of its last policy meeting, which will be poured over for more explanation on why the bank surprised by skipping a rate cut. RBA governor Stevens also speaks later on Tuesday.

* New Zealand has the Reserve Bank of NZ's quarterly survey of inflation expectations. All recent price measures have shown benign inflation pressures with the consumer price annual rate well settled in the central bank's target zone.

* New Zealand bonds still soft in risk-off climate, with yields edging 1.5 basis points higher along the curve.

* Australian three-year government bond futures down 0.02 points to 96.270, a three-month low, and the 10-year contract a tick lower at 95.810.