Aussie struggles, kiwi pauses

The Australian dollar stayed near a 3-month high on Monday but fizzled again at the crucial 77 US cents barrier after repeatedly failing to breach the key chart resistance point and amid broader greenback strength. The Australian dollar held at $0.7667, after rising as far as $0.7689 on Friday when it climbed 0.7 percent.
The Aussie has traded in a sideways direction since the beginning of February, failing persistently at the $0.7700 mark. Analysts expect the struggle to continue, pending the release of important economic data later this week. The Aussie is already up more than 6.5 percent this year thanks to resurgent iron ore, Australia's biggest export earner, and on an upbeat assessment of the economy by the country's central bank.
A string of recent data also showed the A$1.6 trillion economy likely averted a recession in the December quarter after a shock contraction in the third quarter of last year. Technical analysts say a breach above $0.7700 could see the Aussie hitting $0.7740 and then $0.7770/80. Elsewhere, the Aussie paused against its New Zealand counterpart after scaling a more than 4-month peak on Friday.
On the euro, it was at its highest since April 2015 while it held at a one-year top on the yen. In contrast, the New Zealand dollar hovered around two-and-a-half week lows, struggling to recover after the country's central bank signalled it will keep rates at record lows for two years.
The Kiwi stood at $0.7190 on Monday, inching up from $0.7172 hit last week after the Reserve Bank of New Zealand (RBNZ) cited growing global uncertainty for its downbeat outlook. The Kiwi tumbled 1.5 percent last week, its worst performance since the week of December 16. New Zealand government bonds eased, sending yields 4.5 basis points higher at the long end of the curve.
Australian government bond futures were mixed, with the three-year bond contract up 1 tick at98.050. The 10-year contract slipped 1 tick to 97.2650. "While employment on Thursday is the most important monthly data point for traders, the release of NAB monthly business survey is the key for me," said Greg McKenna, chief market strategist at Axitrader.