WELLINGTON/SYDNEY: The Australian and New Zealand dollars fell more than one percent from multi-month highs against the greenback on Thursday after the US Federal Reserve did not hint of more stimulus for the economy, sparking a broad sell-down in risk trades.
* Aussie back at $1.0726 after initially climbing to a seven-month high of $1.0857 when the ECB injected 530 bln euros into the European banking system. But with the ECB done for, now it soon ran into profit taking.
* Fed Chairman Ben Bernanke offered another excuse to sell by stopping short of signaling further bond purchases, though analysts had thought it highly unlikely he would anyway.
* The rush to sell-on-the-fact knocked the Aussie down 1.2 pct from its high leaving a bearish outside trading day on the charts. Now likely to test support at $1.0685 and $1.0650, while resistance comes in at $1.0857.
* Likewise, NZ dollar falls 1.4 pct to $0.8350 early, from an offshore peak of $0.8471, the highest since early September.
* The kiwi, which has risen about eight percent over the past two months, is also seen heading for $0.8322, then $0.8300, with $0.8471 capping the topside for now.
* The euro also down 1 pct against the US dollar, pulling risk currencies down after Bernanke's comments.
* The ECB loaned 530 bln euros in cheap money, slightly more than analysts had expected for the bank's second long-term refinancing operation.
* Euro slips 0.6 pct on the Aussie to A$1.2420 from Wednesday's A$1.2463, and at NZ$1.5936 from NZ$1.6004.
* The Antipodean currencies stay near multi-month highs against a struggling yen, with the Aussie steady at 87.18 yen , not far from 87.42 yen, the best since July. Kiwi around 67.78 yen, near Monday's peak of 68.27 yen, its highest since early August.
* Wall Street and the CRB commodity index also lower. Gold tumbles 5 pct, copper slips while oil higher.
* Focus on China's PMI as building and capex data due in Australia and Q4 terms of trade in NZ. The official PMI is forecast to only edge up to 50.7, and anything higher could support the Aussie.
* The Australian Q4 capex numbers could show a pullback after a huge jump in Q3, but the outlook for spending in 2011/12 and 2012/13 should remain extremely strong.
* Australian bond futures slip, following US Treasuries on improving US data. The three-year futures contract was down 0.03 points at 96.360, and the 10-year contract 0.04 points lower at 95.935.
* NZ government bonds also lower, with yields up three basis points along the curve.
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