WELLINGTON/SYDNEY: The Australian and New Zealand dollars held firm on Monday, underpinned by improved risk appetite as the gloom surrounding China's economic outlook lifted slightly following second quarter growth data late last week.
The Aussie last at $1.0227, having risen as high as $1.0257 in early trade, extending Friday's 1 pct rally.
Aussie seen capped by last week's high around $1.0282, with immediate support around $1.0210/20.
The New Zealand dollar little changed on the day at $0.7963, holding gains after climbing nearly 1 pct on Friday.
Support seen at $0.7930, the 23.6 pct retracement of its June-July rally, while its 100-DMA at $0.7986 should provide resistance. Traders also cite offers above $0.8000, which could limit its upside in the near term.
Antipodeans also keeping a grip on most of Friday's 0.6-0.7 pct gain on the yen, with Aussie buying 80.85 and kiwi fetching 62.93. They are steady vs euro , near all-time highs hit last week.
Market holiday in Japan on Monday keeping markets subdued.
Investors relieved as China's Q2 GDP data on Friday was in line with analysts forecast and ahead of what markets had feared.
This week, focus will be on Fed Chairman Ben Bernanke's semi-annual testimony to Congress, with expectations he will repeat the Fed will take further easing measures only if necessary, which may support the US dollar.
Investors also await New Zealand Q2 inflation data on Tuesday. Annual rate forecast to slow to its lowest level in more than 12 years at 1.1 percent because of weak domestic demand and a high local currency.
Barring a big surprise, limited reaction from the kiwi expected as an in-line outcome will keep intact the market's view the Reserve Bank of New Zealand won't start raising record-low rates until early next year.
In Australia, the central bank will release on Tuesday minutes of its July policy meeting, when rates were held steady as expected following back-to-back cuts.
New Zealand government bonds slip, tracking a fall in US Treasuries. The move pushes yield 4.5 basis points higher across the curve.
Australian debt futures extend fall with the three-year contract down 0.05 points at 97.780, while the 10-year contract is 0.035 points lower at 97.180.
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