WELLINGTON/SYDNEY: The Australian and New Zealand dollars mostly held gains against the greenback on Monday after risk sentiment was boosted by China's trade data and Spain secured up to 100 billion euros to bailout its ailing banks.
Spain on Sunday became the fourth euro zone country to seek international aid in the two-and-a-half-year debt crisis, joining Greece, Portugal and Ireland. That helps risk assets such as the high yielding Antipodean currencies.
The Aussie off highs, holding around $0.9985 after gaining 0.8 pct to an early peak of $1.0010 from New York close on Friday.
Trading slow with Australian markets closed for a public holiday on Monday.
Aussie may extend rebound from early this month, with May 15 high of $1.0016 capping the top topside and support still sitting around June 8 low of $0.9820.
Kiwi little changed around $0.7775. It may test $0.7798 and above that $0.7811, while support holds initially at around $0.7690/00.
Asian bourses follow Wall Street's lead and notch significant gains on improved risk sentiment. Futures point to support for risk markets, with S&P 500 futures up 1.2 pct as euro rises after the Spanish bailout.
Financial markets remain cautious as Greece is heading for the next round of elections on June 17, with a victory for anti-bailout parties raising the risk of Greece leaving eurozone.
China data over the weekend points to more policy easing, with inflation dipping to a two-year low in May, but other data showing flagging economic activity, although trade numbers were better than expected.
Aussie and kiwi also higher against the yen after Spain's action. Aussie at 79.57 yen, not far from a three-week high of 79.71 last week, and the kiwi near one-month high at 61.87 yen.
Aussie a touch softer against the kiwi, sitting around NZ$1.2830, with Reserve Bank of NZ's rate review this week the main focus. Markets pricing of a rate cut has eased to 13 pct from as high as 85 pct in mid-May, while analysts overwhelmingly expect no change on Thursday.
Australian data this week includes business and consumer confidence readings, and the RBA Governor speaks at an economic forum on Wednesday.
NZ government bonds also softer, with yields around 4.5 bps higher across the curve.
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