SYDNEY/WELLINGTON: The Australian and New Zealand dollars climbed against a broadly softer euro on Monday and were generally better-bid as Asian equities appeared to be stabilising after a punishing selloff.
The euro dipped to A$1.4738 and NZ$1.5959, having retreated from Friday's session high of A$1.4835 and NZ$1.6106.
Investors took aim at the euro after European Central Bank officials stepped up their verbal campaign against the currency, saying further policy easing would be needed if the euro continues to strengthen.
Against the US dollar, both Antipodean currencies found their footing as stock markets in the region showed some signs of stabilising. Japan's Nikkei drifted in and out of positive territory suggesting an improvement in market mood after a big selloff on Friday amid what appeared to be a global rotation out of technology and momentum stocks.
The Australian dollar was steady on the day at $0.9396 , following Friday's 0.2 percent fall.
Immediate resistance is seen at the five-month peak of $0.9461 set last week.
Its New Zealand peer was also steady at $0.8674.
The kiwi, which struck a 2-1/2-year high of $0.8746 last week, has drawn support from continuing solid economic data and its relatively high yields, although doubts about how much further it can go in the short term have grown.
"Near-term momentum has slowed, warning a reversal may be nearby," Westpac senior strategist Imre Speizer said in a note.
"Accordingly, we temper our bullish bias for the week ahead, expecting a neutral range of 0.8600-0.8750." Speizer said over the next month or two the kiwi has a "decent chance" of breaking above its post-float high of $0.8842 set in August 2011.
Near term support is seen at $0.8640 with Friday's high of $0.8707 the first hurdle higher. A survey on Monday showed activity in the country's services sector rose in March to its highest in 6 1/2 years.
Key local events in a holiday-shortened week are the fortnightly global dairy auction, which has seen prices fall 18 percent in the past two months, and quarterly inflation data.
Analysts expect consumer prices to have risen 0.5 percent in the first quarter, for an annual rate of 1.7 percent, which matches the Reserve Bank of New Zealand's forecasts.
An outcome at or about expectations is seen as confirming the central bank's professed tightening policy, which is set to deliver a further 25 basis-point rise on April 24.
External data that might drive the Aussie and kiwi include a raft of Chinese numbers on Wednesday.
New Zealand government bonds yields traded with a bid tone, sending yields a couple of ticks lower at the long end of the curve.
Likewise, Australian government bond futures rose, with the three-year bond contract up 3 ticks to 97.010.
The 10-year contract added 3.5 ticks to 96.101, having touched a fresh one-month high earlier in the session.
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