SYDNEY/WELLINGTON: The Australian and New Zealand currencies came under modest selling pressure after China's trade data disappointed some in the market looking for stronger imports.
China imports were up 6.3 pct last month from a year earlier, just half of what analysts had expected, keeping intact worries about domestic demand. Trade breakdown by countries due later.
The Aussie slips to a session low of $1.0178, vs $1.0199 at its New York close. Initial support seen around $1.0175, the floor of its uptrend channel drawn from the June 1 trough.
The kiwi trades at $0.7947, a tad softer on the day, but still staying above a one-week low of $0.7929 hit on Monday.
Kiwi flirting with its 200-day moving average at $0.7955. Below that, support seen at $0.7930, the 23.6 percent retracement of its June-July rally.
Both Aussie and kiwi have retreated from two-month peaks over the past few days, underlying ongoing market volatility. Still, analysts expect both Antipodean currencies to stay supported due to relatively positive economic fundamentals.
The Antipodeans give back just a little of their recent hefty gains on the euro, which clawed back from lifetime lows on short-covering.
"Bouts of global risk aversion will knock the currency lower from time to time," BNZ analysts said in a note. "However, as long as the NZ economic recovery remains on track, dips towards $0.7500 are expected to be short-lived."
New Zealand business survey shows a slide in confidence, while other data showed an improving housing market and increased consumer spending.
In Australia, business conditions improved slightly last month, but confidence took a further hit from concerns about Europe's debt crisis and domestic taxes.
Market still positioned for more RBA interest rate cuts down the road. Interbank futures implying around 75 bps worth of easing over the next 12 months.
New Zealand government bonds inched up, nudging yields as much as 1 basis point lower across the curve.
Australian bond futures subdued with the three-year contract flat at 97.700 and the 10-year down just 0.01 points at 97.090.
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