WELLINGTON/SYDNEY: The Australian and New Zealand dollars traded with a downbeat tone on Monday as a meeting of European Union finance ministers failed to offer any answer to the region's deep-seated debt woes, with investors now looking to this week's Federal Reserve meeting.
The Aussie falls away to around $1.0300 in early Asia-Pacific trading, down from $1.0360 late in NY on Friday. It had ranged between $1.0308 to $1.0399 in Friday's offshore session.
Support for the Aussie seen initially at $1.0278 and below that $1.0231. Resistance initially at $1.0370 ahead of the 200-MA around $1.0400.
The New Zealand dollar also dragged lower by weakness in the euro, settling around $0.8245 after opening around $0.8260. It traded between $0.8224 and $0.8343 in Friday's overseas session.
The currency is seen supported around $0.8270 with resistance initially at $0.8320 and above that $0.8370.
Euro falls over a cent in early trading to $0.1.3680, from $1.3790 in late New York. A meeting of EU finance ministers in Poland, with US Treasury Secretary Timothy Geithner also attending, stated Greece must meet its targets to get fresh funds but offered no new solutions.
Greek Prime Minister George Papandreou cancels visit to the US, sparking fears the decision signals an imminent default by his country and giving rise to talk of an early election. The Greek finance minister says 2012 budget will look at further spending cuts.
The euro loses around 0.3 percent against the Antipodeans, at A$1.3270 on the Aussie and against the kiwi at NZ$1.6568 .
Asia-Pacific trade will be thinned by Japanese markets closed for a holiday.
Investor attention now on Federal Reserve's policy-setting committee, which will meet on Tuesday and Wednesday to discuss what, if anything, the central bank should do next. The popular idea is that the Fed would sell short maturities and buy longer ones.
Australian diary this week dominated by Reserve Bank of Australia events -- minutes of September meeting, speeches by senior officials, and RBA financial stability report.
Main NZ events this week are second quarter current account and growth data. A Reuters poll forecasts the economy grew 0.5 percent in the second quarter, against a 0.8 percent rate in the first quarter. The current account deficit is seen shrinking slightly to 4 percent of GDP.
Survey shows NZ consumer confidence survey steady in the third quarter. Other data for release includes credit card billings.
Australian bond futures firmer with the three-year contract up 0.02 points to 96.340 and the 10-year 0.015 points lower at 95.750.
NZ government bonds a touch firmer as US Treasuries rise on hopes of some stimulus measures by the Federal reserve.
Copyright Reuters, 2011
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