WELLINGTON/SYDNEY: The Australian and New Zealand dollars were softer on the US dollar early on Monday as investors turned wary of risk after credit rating downgrades for nine euro zone economies, though the Aussie made another record high on the euro.
* The Aussie opens down around 0.3 percent at $1.0284 from Friday's New York close at $1.0315. It ranged between $1.0232 to $1.0368 in the offshore session.
* Initial support seen at $1.0263, the Jan 11 low which opens way to key level at $1.0220, with strong resistance at around $1.0385 where it has been knocked back several times this month.
* The New Zealand dollar fares a little worse falling 0.4 percent to $0.7913 from its close last week at $0.7945, after ranging between $0.7866 and $0.7955.
* Key support is seen at previous low of $0.7866, with initial resistance at $0.7981 ahead of $0.8000.
* The euro sits just above a near 17-month low against the greenback at $1.2635 from New York close of $1.2678. Standard and Poor's, as expected, downgraded the credit ratings of euro zone countries led by France, Spain, Italy and Austria. S&P, however, left Germany's triple A rating unchanged, with a stable outlook..
* Euro seen with more downside, with the breakdown in talks between Greece and its creditor banks to slash the country's huge debt a new threat. Greece has warned of "catastrophic" results if a deal to swap bonds is not reached soon. .
* Against the Aussie, the euro was down at A$1.2276 just above its all-time low of A$1.2255. The euro also at NZ$1.5949, just off the life-time low of NZ$1.5917 touched last week.
* The Aussie holds around NZ$1.2980 against the kiwi, after it touched a 10-week low of NZ$1.2910 last Thursday.
* Data on both sides of the Tasman likely to be more influential this week. Australia has consumer sentiment, employment and trade price numbers. New Zealand has inflation, retail, consumer and business sentiment.
* Chinese data includes GDP, house prices and industrial output. Markets likely to be thinned by the closure of US markets on Monday.
* New Zealand government bonds fell, sending yields up to 0.05 points higher along the curve,
* Australian bond futures finished higher on Friday. The 3-year contract was quoted up 0.060 points at 96.790 and the 10-year contract 0.080 points higher at 96.200.
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