SYDNEY/WELLINGTON: The Australian and New Zealand dollars were off lows on Thursday as emerging market currencies showed some signs of stabilising after a recent tumble, though investors remained cautious.
The Aussie was firmer at $0.8968, from $0.8940 in early trade, having touched a three-week trough below $0.8900 on Wednesday.
The New Zealand dollar edged up to $0.7822, from $0.7798, after slipping to $0.7744, its weakest since early August.
Both Antipodean currencies pulled back from multi-year lows against the euro and Swiss franc as fears that the Syrian conflict might spiral into a major crisis faded.
At home, the Australian dollar showed a muted reaction to local business investment figures as the reading did little to resolve the outlook for further interest rate cuts.
Spending by miners more than offset a slump in manufacturing capital expenditure, but plans for the year ahead suggested investment was set to slow from here.
"The capex figures were pretty soft," said Su-Lin Ong, senior economist at RBC Capital Markets.
"Weakness in spending plans, particularly in non-mining, should keep the Reserve Bank's easing bias."
Markets give only a minor chance of an easing to a record low of 2.25 percent next week, in part because it would come only a few days before an election.
Futures markets imply around a 58 percent chance of a cut in November, rising to 80 percent by Christmas.
RBC's Ong said it was inevitable the Aussie would test a three-year low of $0.8848 touched earlier this month due to the combination of domestic and international concerns.
Resistance was found at $0.8985 with traders citing stops above.
New Zealand government bonds eased, sending yields 2 basis points higher along the curve.
Australian government bond futures were steady with the three-year bond contract at 97.240.
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