SYDNEY/WELLINGTON: The Australian and New Zealand dollars clung to overnight gains on Wednesday as Asian stocks came under pressure amid fading hopes that this week's EU summit will move the region a step closer to resolving its debt crisis.
The Aussie dollar at $1.0049, retreating from a high of $1.0083 set overnight. Still, it remains off Monday's trough of $0.9969 on buying interest reportedly from sovereign and real money funds.
Resistance seen around $1.0070/90, a band that has capped the currency in the last few sessions.
NZ dollar around $0.7890, after an early high of $0.7913. The kiwi still seen as broadly range-bound with support at $0.7865, then $0.7844. Resistance around $0.7935 ahead of $0.7955/60.
No impact from NZ trade data, with annual deficit widening as expected on weaker meat and timber exports. Still, the country recorded its fourth straight monthly surplus.
Antipodean currencies had been squeezed higher on Tuesday thanks to a turnaround on Wall Street, in part on a stronger-than-expected rise in home prices.
But not helping sentiment, German Chancellor Angela Merkel sought to bury the idea of common euro zone bonds, two days before the crucial EU summit.
Antipodean currencies give back a bit of ground against the euro, which edges up to A$1.2423 and NZ$1.5816 from a three-month low of A$1.2387 and a four-month trough of NZ$1.5745 set overnight.
Against the yen, both commodity currencies stall a bit after staging a modest recovery from Monday's slide. Aussie is at 79.72 yen, but still off Monday's low of 79.27, while kiwi is at 62.61 yen vs Monday's 62.41 trough.
NZ government bonds a touch lower, sending yields 2 basis points higher along the curve.
Australian government bond futures also slightly softer, with the three-year contract down 0.02 points at 97.680 and the 10-year 0.015 points lower at 97.060.
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