WELLINGTON/SYDNEY: The Australian and New Zealand dollars struggled to advance against the US dollar on Monday as investors turned cautious about a slowdown in global growth, but the currencies remained near all-time highs on the euro.
The Australian dollar edged lower to $1.0556, from $1.0572 in early trade, having peaked at $1.0615 last week, the highest since late March.
It was seen consolidating with minor support around $1.0525, then Friday's low of $1.0497, while stops were found above $1.0580, ahead of $1.0615.
Appetite for risk assets was limited with most Asian bourses in the red and further evidence of slowing global growth.
Data on Monday showed Japan's economy grew 0.3 percent in April-June, below a 0.6 percent rise forecast, as consumer spending started to lose momentum and exports were hit by Europe's debt crisis.
This came on the back of disappointing trade figures by China last week.
Investors will be eyeing US retail sales and consumer prices on Tuesday as well as the euro zone's second-quarter gross domestic product reading, which is expected to show a contraction.
Traders said the Antipodean currencies took a slight hit on an unsourced report Beijing had postponed imminent easing measures. There had been rumours late on Friday that China's central bank was about to cut the reserve requirement ratio to shore up its economy.
The Aussie and kiwi dollars are very sensitive to news out of China, a major export market. Talk of delay or lack of government action from China could disappoint Aussie and kiwi bulls.
The euro remained near record lows against both Antipodean currencies. It last fetched A$1.1640, having gone as deep as A$1.1597 earlier in the month.
It has lost around 10 percent since mid-May as it has become the currency of choice to fund carry trades.
"It has had a consistent downtrend.... The Aussie might be starting to feel expensive against a number of currencies," said Greg Gibbs, a strategist at Royal Bank of Scotland in Singapore.
In recent months, the Australian dollar has also rallied to record highs against the British pound, while it climbed to multi-year peaks against the Swiss franc and rose to three-month highs on the yen.
"The (EUR/AUD) move will slow to a more steady pace, perhaps it will take some time before it breaks A$1.1500," Gibbs added.
Charts suggest a break of $1.1600 would bring the downtrend back in focus, while a close above the 20-day moving average of A$1.1734 would target a bigger correction to A$1.1933, the 23.6 percent retracement of the May to August decline.
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