SYDNEY/WELLINGTON: The Australian and New Zealand dollars drifted higher on Monday, lifted by resilient equities, though the mood remains fragile due to lingering worries about the US economy and euro zone debt.
The Aussie dollar , a third of a cent higher at $1.0430 from late New York on Friday. Major resistance seen at $1.0558, the 18 Aug high. Support at $1.0315. The Aussie has fallen around 5 percent this month.
Fears that Wall St's woes would cause more grief on regional stocks not founded as most Asia-Pacific bourses manage slight gains.
Sentiment still volatile and fragile on persistent flow of weak US data and a lack of confidence in euro zone leaders to solve their debt woes.
Spot gold scales fresh all-time high above $1,878 an ounce, after staging its biggest weekly gain in 2.5 years last week as investors seek safety.
The NZ dollar firmer around $0.8210 from late New York's $0.8179. Support around $0.8169, the 100-day moving average, with local exporters' buying seen cushioning the downside. Initial resistance at $0.8288 and $0.8313.
The Antipodeans gain a little ground against the yen, with the Australian dollar around 80.17 yen, having fallen more than 7 pct this month. It hit a trough of 76.48 yen on Aug 9. Kiwi at 63.17 yen from 62.44 on Friday.
Euro under pressure, slipping to A$1.3780 , having hit a five-month peak of $1.4262 earlier this month. Single currency also lower against the kiwi at NZ$1.7480 .
Against the NZ dollar, the better-performing Aussie edges up to NZ$1.2715 , not far off a five-week peak around NZ$1.2733 set Friday. Last trades at $1.2697.
NZ data calendar this week includes July overseas trade, food inflation and second quarter retail -- poll sees 0.6 percent rise in volumes.
Australian diary light with RBA Deputy Governor Battellino speech on Tuesday and RBA governor appearance before parliament on Friday the key focus.
The NZ government debt flat after some US Treasuries posted slight losses, sending local yields a touch higher in the longer end.
Australian bond futures slightly weaker, with both the 3-year contract and the 10-year 0.05 points lower at 96.380 and 95.720 respectively.
Copyright Reuters, 2011
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