SYDNEY/WELLINGTON: The Australian and New Zealand dollars found a measure of support on Tuesday as exporter and fund bids helped blunt the latest bout of euro-zone anxiety in global markets, though the bias remained to the downside.
The Aussie dollar was holding around $1.0030, having bounced from a trough of $0.9969 overnight. Aussie support seen at $0.9950 but resistance proving tough at $1.0035.
New Zealand dollar edges up 0.4 percent to a session high $0.7904, breaking above short-term technical resistance at $0.7897, its 200-hourly moving average. This paves the way to more gains in the near term.
Further gains may be capped, given technical resistance at $0.7944, its 200-DMA, while support seen around $0.7865, the 50-DMA.
Investors unfazed by news that Graeme Wheeler, an expatriate and former World Bank official, will become the next governor of the Reserve Bank of New Zealand. Current Governor Alan Bollard resigns in September.
Reserve Bank of Australia (RBA) assistant governor Guy Debelle participates in a panel discussion at a mortgage conference around 0350 GMT, but little is expected on policy.
Stocks and risk assets under pressure on doubts this week's European summit will make an real progress on the region's debt crisis, sending investors to the safety of the dollar and the yen.
Hopes the EU summit ebb after Germany's Chancellor Angela Merkel says people want easy solutions, and she dismisses the idea of common euro zone bonds, as Spain formally seeks bailout help.
Ratings agency Moody's slashes its view on Spanish banks, cuts long term view on 28 banks by one to four notches, following the sovereign downgrade two weeks ago.
Kiwi recoups half a percent to 63.01 yen, while edging up against the euro. It is little changed on the day versus the Aussie, which trades at NZ$1.2690, hovering near a seven-week low around NZ$1.2675 hit on Monday.
Aussie regains some ground on the yen to 79.97, after falling a sharp 1.5 pct on Monday.
Kiwi outperforms, boosted broadly after a recent string of strong New Zealand economic data provides fundamental support even as speculation builds that the EU summit will not deliver an immediate panacea to the euro zone debt crisis.
New Zealand government bonds edge up on domestic safety bid, sending yields 3 basis points lower across the curve.
Australian government bond futures firm, with the three-year contract up 0.03 points at 97.680 and the 10-year up 0.050 points at 97.050.
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