WELLINGTON/SYDNEY: The Australian and New Zealand dollars were sharply lower on Tuesday as the initial relief generated by the euro zone fiscal deal was doused by warnings from ratings agencies and a steep rise in Italian and Spanish bond yields.
* The Aussie around $1.0063, against Monday's late local level of $1.0171. It ranged $1.0052 to $1.0188 overnight, and is back near 10-day lows of $1.0048 hit last Friday.
* Technically risks are now to the downside for a test of support at $1.0048 and $1.0023, after failing to clear strong resistance at $1.0233.
* The NZ dollar was subdued at $0.7630, versus $0.7750 in New York, having reached a 10-day trough of $0.7636 offshore.
* Kiwi support was seen around $0.7600 with $0.7680 to cap the topside.
* Euro hits a two-month low against the dollar and more losses seen. Investors renew selling of Italian and other European government bonds.
* Ratings agency Fitch says the summit did little to ease the crisis, while Moody's says it will look at the rating of European sovereigns early next year. See and
* Standard & Poor's puts more pressure on sentiment after its chief economist says time is running out for the euro zone to resolve its debt problems and that it might need another financial shock to get it moving.
* Commodities ran into selling with the CRB index off 1.1 pct and copper, gold and oil all weaker. The S&P 500 shed 1.5 pct while European bank shares were put in the grinder.
* The more risk averse climate sees the Antipodeans weaker against the yen. Aussie down around 1 percent at 78.45 yen and the kiwi 1.2 percent lower at 59.44 yen .
* Against the kiwi, the Aussie a touch firmer at NZ$1.3196.
* Aussie debt futures firmer with the three-year contract up 0.05 points to 96.895, and the 10-year contract 0.055 points to 96.125.
* Australia has figures on business activity and confidence later Tuesday, while New Zealand has food prices.
* New Zealand government bonds also gain from safe haven bid sending yields 3 basis points lower along the curve.
Comments
Comments are closed for this article.