WELLINGTON/SYDNEY: The Australian and New Zealand dollars plumbed their weakest against the greenback in roughly four months on Thursday, stung by weakness in the euro as growing political uncertainty in Greece threatened the country's debt bailout plan.
* Aussie falls to $1.0021 in offshore trade, its lowest since Dec. 20, before trimming some losses to trade at $1.0040 early in local session.
* The kiwi skids to $0.7813, its weakest since early January. It too trimmed losses to trade around $0.7840 at 2215 GMT. Against a currency basket, it slumped to a four-month low of 70.26.
* Risk sentiment further hit by rising Spanish government bond yields given escalating concerns about the health of its banking sector.
* Both currencies track an ongoing slide in the euro, which hovered near a 3 1/2-month trough hit versus the US currency on Wednesday as investors found little solace in a pledge by European governments to make bailout payments this week to keep Athens solvent.
* The high-beta Antipodean currencies continue to sell off as the inability of Greece to form a new government raised the prospect of a second general election in a few weeks.
* This cranks up risk aversion, pushing global share markets lower and raising demand for the safe-haven dollar as it increased speculation that Athens, which is struggling to fund its debts, may not deliver austerity measures agreed in exchange for bailout funds.
* Both currencies hang near four-month lows versus the yen, which is considered a lower-risk alternative to the Antipodeans, and hover around their weakest against sterling since late 2011
* The Aussie and kiwi have dropped around 4 percent so far this month. They have underperformed the euro, which has slid 2.3 percent.
* In addition to ongoing euro zone risks, investors have been dumping the Antipodean currencies on signs of slowing economic growth in Australia and New Zealand, which resulted in a surprisingly big cut in Australian interest rates this month.
* Investors await Australian jobs figures due later in the day, along with Chinese trade data.
* Signs of employment sector weakness could add to selling pressure on the Aussie as it would raise speculation that the Reserve Bank of Australia could follow up this month's 50 basis point rate cut with more easing in the coming months.
* "On a weaker number, AUD may test lower and try parity," NAB analysts said in a note. "The ability to break below parity would be an important test as there are likely buyers at and just below that level."
* Data showing sluggish Chinese exports could also sting the Aussie and the kiwi as they would add to signs of slowing growth in the world's No. 2 economy, which would lower demand for Australian and New Zealand commodities.
* Analysts say heavy selling in the Aussie raised the risk of an upside correction to $1.0110, but many expect the currency to weaken more if global risk aversion increases.
* The Aussie also faces more downside pressure if it ends the week below technical support at $1.0103, its 100-week moving average.
* Technical signs also point to more weakness in the kiwi which has broken below technical support at $0.7921, the 50 percent retracement of its November-February rally. Next support is at $0.7991, the 61.8 percent retracement of that rally.
* Australian government bonds continue to climb, benefiting from a rush to the world's lowest-risk government bonds. The 10-year yield slumped to 3.340 percent its lowest since the 1950s.
* The three-year contract rises 0.040 point to 97.380, its highest since 1992, while the 10-year contract hits a lifetime high of 96.780.
* New Zealand government bond prices little changed, with yields half a basis point lower across the curve.
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