SYDNEY/WELLINGTON: The Australian and New Zealand dollars were generally firmer on Wednesday as worries over China abated just a little while solid US data gave Wall Street a lift and helped sentiment toward risk assets.
* The Aussie at $0.9252, from $0.9215 in late local trading on Tuesday, having traded $0.9169 to $0.9284 overnight, as it consolidates after plunging to a 33-month low of $0.9148 at the start of the week.
* Aussie near term support seen at $0.9220 ahead of the more solid $0.9197, with resistance at $0.9285.
* The New Zealand dollar also consolidates at around $0.7737 from Tuesday's late local level of $0.7719. Support seen at $0.7725 with resistance initially at $0.7775 and then just below $0.7800.
* China's central bank moves to calm market nerves about a potential credit squeeze, saying recent interest rate volatility was temporary and it will guide markets to reasonable rates.
* Chinese stocks staged a late come back on Tuesday having been deeply in the red at one stage, and investors will be watching the markets nervously today.
* A slew of positive economic data boosts optimism about the US recovery and eased concerns that the Federal Reserve might scale back its stimulus measures too early.
* Orders for US durable goods rise more than expected, a gauge of planned business spending gains for a third straight month, prices of single-family homes have their biggest rise in seven years, and US consumer confidence rises to its highest in more than five years.
* The data suggested the economy could cope when and if the Fed started cutting back on its bond buying programme.
* The better mood helped the Aussie inch up on the euro to A$1.4135, keeping the single currency away from its recent peak at A$1.4416. The Aussie also gained on the yen to 90.64.
* IMF chief economist Olivier Blanchard says Fed talk of exiting its stimulus could spur volatility in global markets, and that recent movements have been exaggerated. * European Central Bank boss Mario Draghi says an "accommodative" monetary policy is still appropriate for the ECB and any exit is "distant".
* Antipodeans still light on local data of any importance, leaving the currencies to be driven by offshore factors.
* Australian debt futures calmer after bouncing on Tuesday, though Treasury yields rose once again. The three-year contract indicated down 0.030 points at 97.070. 10-year bond futures 0.050 points lower at 96.130, after falling to a 15-month trough of 95.845 earlier in the week.
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