WELLINGTON/SYDNEY, June 14 (Reuters) - The Australian and New Zealand dollars bided their time on Thursday as investors were in a cautious mood after a ratings downgrade for Spain and ahead of a Greek election this weekend.
Aussie last at $0.9940, having retreated from a high of $1.0004 set on Wednesday. It is stuck in a slim range of $0.9931 and $0.9955 so far this session. Support is seen at $0.9847, the 38.2 pct retracement of its June rally.
The kiwi holds around $0.7757, having touched a four-week high of $0.7810 overnight and a low of $0.7730 just before a New Zealand central bank rate decision. Near-term support seen at $0.7726, with $0.7813 likely to cap the topside.
The RBNZ leaves rates at a record low 2.5 percent, as expected, for a 10th consecutive review. The bank implies rates are likely on hold well into next year because of a tepid domestic economic recovery and global uncertainty.
Markets put a 52 percent chance of a rate cut at the July 26 rate review, with 20 basis points of cuts over the next 12 months.
Antipodean currencies steady against the yen at 78.93 and 61.59 respectively. The euro a touch softer at A$1.2629 and NZ$1.6175.
The euro clings to most of its gains on the US dollar despite a short-covering rally petering out after ratings agency Moody's slashed Spain's rating to one notch above junk.
Attention firmly fixed on Greece's election, with a report in the Financial Times suggesting a growing willingness to relax Greece's bailout terms, while the leader of the anti-bailout group Syriza wants to stay in the euro-zone.
Australian bond futures firmer, with the three-year contract up 0.07 points at 97.660, while the 10-year contract adds 0.12 points to 97.115.
NZ wholesale bank bill futures a touch firmer after the RBNZ statement. New Zealand government bonds follow Treasuries and rise in price, sending yields as much as 8 basis points lower.
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