WELLINGTON/SYDNEY: The Australian and New Zealand dollars were firmer but wary on Friday amid mixed news on whether a solution to Europe's debt crisis will be found at a key EU summit this weekend.
* Aussie around $1.0230 after bouncing between $1.0147 and $1.0300 overnight. It had been at $1.0180 late on Thursday.
* Aussie has been struggling to stay above $1.0200 since rallying some 10 percent from a one-year trough of $0.9388 on Oct 4. Initial support is seen near $1.0225 with resistance at $1.0295.
* The New Zealand dollar at $0.7926 after its overnight traverse from $0.7872 to $0.7991. Kiwi seen supported at $0.7860 with resistance at 0.8016.
* Both currencies were knocked about by various, and at times conflicting, rumours swirling around the euro zone's debt crisis.
* The euro bounces around in volatile trading knocked by scepticism that this weekend's European Union summit will yield any concrete solution to contain the escalating debt crisis.
* It drew support after the French and German leaders confirmed they will press on with work to find a solution although no decisions will be adopted before a second meeting to be held by Wednesday.
* Sentiment was soured by news from Fitch Ratings that its outlook for Italy's largest banks is negative. It also kept a negative outlook on Belgium, warning it could downgrade the country if the euro zone debt crisis escalates. For details, see
* The Antipodeans regain some lost ground against the yen, with the Aussie at 78.61 yen from 78.12 yen and the kiwi at 60.87 yen from 60.52 yen.
* The Aussie a touch firmer against the kiwi at NZ$1.2917 and within sight of a three-month peak of NZ$1.2931 set on Tuesday.
* Australian data on export and import prices for the third quarter due later on Friday , while New Zealand has monthly migration and tourist arrivals numbers.
* Next week sees a busy week, with third quarter inflation data in both countries. New Zealand also has a central bank rate review, trade, business confidence, and a government economic and fiscal update ahead of the election.
* NZ markets closed on Monday for public holiday.
* The New Zealand government bond prices largely flat, but slight weakness at short end of the curve.
* Australian debt futures weaker, with the three-year contract 0.05 points lower at 96.150 and the 10-year down 0.03 points at 95.510.
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