Australian and New Zealand dollars cut losses

The Australian and New Zealand dollars cut losses against the US dollar and the yen on Wednesday helped by profit-taking from short-sellers, but still remained very close to multi-week lows as worries about global growth linger. The Aussie was up 0.3 percent on the day to $1.0292, having plumbed three-month lows of $1.0226 when Asian equities took a spin.
The New Zealand dollar trimmed some of its losses as it caught an updraft from the Aussie. It pulled itself back to $0.8166, midway between its New York close and Tuesday's late local level. The Aussie and kiwi were squeezed modestly higher partly as bears booked profits following heavy overnight losses, particularly against the safe-haven yen.
"The rally is probably linked to positioning as the market is a bit short," said a trader at a European bank in Singapore. A sustained break below $1.0155, the base of the weekly Ichimoku cloud, would indicate the end of the currency's rally.