SYDNEY/WELLINGTON: The Australian dollar was modestly bid on Monday after two straight weeks of declines, while its New Zealand peer was steady in a cautious start to a week riddled with event risk.
The Aussie edged up 0.1 percent to $0.9285, having shed 0.7 percent last week and 0.6 percent the week before. It has lost steam since hitting a five-month high of $0.9461 on April 10 but recently found good support at $0.9250.
The kiwi traded at $0.8581, nearly flat on the day. Near-term support was seen at $0.8545 and $0.8530, with offers at $0.8610/20.
Against the yen and euro, the Aussie was a touch firmer while the kiwi held largely steady. The Aussie edged up 0.1 percent to NZ$1.0818 following last week's 0.4 percent fall.
Trading was subdued as local markets struggled back from a long weekend holiday and ahead of central bank policy reviews in the United States and Japan.
Investors were also waiting for the influential US jobs report, China's manufacturing survey and euro zone inflation data, all while keeping a wary eye on developments in Ukraine.
"This may have been the calm before the storm," said David de Ferranti, market analyst at FXCM in Sydney.
"Headlining the calendar will be the critical US payrolls data due on Friday, with an upside surprise likely to bolster demand for the greenback due to Fed policy implications."
Westpac senior strategist Imre Speizer said a recent improvement in some US economic data had boosted the US dollar relative to the kiwi.
"Near-term momentum in the NZ dollar has flipped to negative and we expect it to approach the low $0.85s this week," he said in a market note.
However, he noted that the kiwi was still in demand after the Reserve Bank of New Zealand last week raised rates, signalled further tightening, and seemed to tacitly acknowledge there was little to be done about the elevated currency.
"Speculators continue to buy the NZD, aware the RBNZ tightening cycle has some way to run. We expect the current corrective phase to give way to a resumption of the uptrend," he said.
Local data this week include overseas trade, which is expected to see a surplus of NZ$937 million for March, along with building consents, and a monthly business sentiment survey.
In Australia, only second-tier data is scheduled, starting with private sector credit on Wednesday.
New Zealand government bonds had a solid bid tone, sending yields 4 basis points lower across the curve.
Australian bond futures were only a tad firmer with the three-year contract 1 tick higher at 97.090 while the 10-year contract was up 2 ticks at 96.085.
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