Aussie & NZ dollors consolidate ahead of FOMC

WELLINGTON/SYDNEY: The Australian and New Zealand dollars clung onto gains on Wednesday, as sentiment was lifted on talk of Greek progress and hopes the Federal Reserve would offer new support for the struggling US economy.

The Aussie marks time at $1.0262, from $1.0270 in New York, well off a six-week low of $1.0148 hit on Tuesday.

Traders feel Aussie set to hold above $1.0230 with hourly support seen initially at $1.0230/45 and below that $1.0200. Resistance found at 1.0320.

Earlier in session US names and prop traders sold decent amounts, taking the Aussie to $1.0233.

The NZ dollar shuffles sideways, hovering around $0.8218, from $0.8243 in NY. Support seen at $0.8164, with resistance around 100-day moving average of $0.8253, then $0.8290.

Markets hesitant to take large positions on Antipodeans ahead of FOMC policy decision due at 1815 GMT.

Speculation the Federal Reserve will take some sort of action, likely extending the maturity of its balance sheet and maybe promising more if needed.

The Aussie has lost 4.1 percent this month but is holding above parity, despite fears that it might revisit the five month lows of $0.9927 seen in August.

Aussie resilient to sharp move down in copper after the IMF cut its global growth forecast, raising concern for future metal demand.

Three-month copper on the London Metal Exchange declined 0.6 percent to $8,260.25 a tonne by 0107 GMT, after dropping 0.7 percent in the previous session.

Against the kiwi, the Aussie holds onto gains, trading around NZ$1.2469, off a six-week low of NZ$1.2343 struck on Monday.

NZ current account data skewed by revisions, with annual deficit widening to 3.7 pct of GDP from 3.6 pct in Q1, but less than the 4 pct forecast in a Reuters poll.

Separately, NZ also had its first migration gain in six months in August.

Focus now on GDP data due Thursday with forecasts for 0.5 percent growth in the second quarter, after 0.8 pct in Q1.

Kiwi earlier unmoved by dairy giant Fonterra's latest auction. Prices fell for a seventh straight auction, down 2.1 percent on previous auction. Prices now around 3 percent down from last year. See

NZ government bonds steady, with slight offered tone in the front end.

Australian bond futures fall, with the three-year contract 0.06 points lower at 96.370 and the 10-year down 0.05 points at 95.780.

Copyright Reuters, 2011