WELLINGTON/SYDNEY: The Australian and New Zealand dollars hovered at two-week lows against the greenback on Wednesday, with the Aussie briefly drifting below parity yet again following an unexpected drop in consumer sentiment.
The Aussie dollar at $1.0002 vs $1.0012 late in New York. Support seen around $0.9940, the 61.8 pct retracement of the Nov. 23 to Dec. 8 rally.
Aussie dips to session low at $0.9986 after a closely watched measure of consumer confidence fell sharply in December as gloomy news from Europe fuelled concerns about the economic outlook.
Local importers and Tokyo players seen selling above parity. Next focus is a speech by Reserve Bank of Australia deputy governor Battellino due at 0130 GMT.
The NZ dollar steadies around $0.7565, having slid from $0.7675 to $0.7554 on Tuesday. Having broken through trend support at $0.7590, kiwi seen testing $0.7460.
Both Antipodeans under pressure after euro hits an 11-month low on the USD in NY, ending weeks of stalemate with a break to the downside.
This is in part after German PM Merkel rejected any expansion in the EU bailout fund and amid ongoing worries that ratings agencies will downgrade credit ratings of euro zone countries.
Fed's widely expected decision to leave policy on hold did nothing to improve market confidence. Many traders though suspect moves had less to do with logic and more to positioning in thin year-end markets.
The euro steadier against the Aussie at A$1.3024 as huge chart support in the A$1.2923/1.3000 area looms. Euro at NZ$1.7208, up from NZ$1.7162 overnight low.
Against yen, Antipodeans struggling at two-week lows with the Aussie at 78.03 and the kiwi at 59.02, not far off overnight troughs at 77.79 and 58.85 respectively.
NZ data-light with only offshore holdings of government securities and manufacturing survey this week, ahead of next week's GDP and current account.
Australia bond futures a touch softer with the three-year contract down 0.03 points at 96.870, with 10-year bond futures 0.015 lower at 96.130.
NZ government bonds flat.
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