Australia & NZ dlrs run out of puff; more calming Fed talk

27 Jun, 2013

SYDNEY/WELLINGTON: The Australian and New Zealand dollars were modestly lower on Friday as their bounce showed signs of tiring into month- and quarter-end, though Federal Reserve officials were again out trying to calm worries about an end to easy money.

* The Aussie at $0.9282, from $0.9320 late locally on Thursday. It ranged $0.9263 to $0.9331 overnight, and is on track for a slender gain for the week.

* Aussie's rebound from the 33-month low seen on Monday may be running out of steam. Near term support seen at $0.9236 and then $0.9200, with resistance at $0.9290 and then $0.9320.

* The New Zealand dollar at $0.7794, from Thursday's late local level of $0.7819, having traded $0.7773 to $0.7853 in offshore trading.

* The kiwi touched a one-year low of $0.7683 on Monday, but near term support seen around $0.7750 and then $0.7720 with $0.7830 likely to cap the topside.

* President of the New York Fed, William Dudley, and Fed Governor Jerome Powell seek to dissuade investors that monetary accommodation is fading any time soon, saying that markets have misinterpreted the US central bank's intentions.

* Data shows US consumer spending was subdued in May and new applications for unemployment benefits fell last week, suggesting the economy is on a moderate growth path at best.

* European authorities agree on a deal to shift the burden of paying for bank bailouts away from taxpayers and on to investors and wealthy savers.

* New Zealand has building consents data, which is volatile month on month has been showing a gradually improving trend over the past year. Australia has private sector credit.

* Euro nudges higher on Antipodeans to A$1.4045 from A$1.3977, although still well off the recent top of A$1.4416. Against the kiwi, it edges up to NZ$1.6717 from NZ$1.6657.

* Australian debt futures rose with the three-year bond contract up 0.04 points to 97.150, while the 10-year contract rises 5 ticks to 96.215.

* New Zealand government bond prices with slight bid tone, sending yields a tick lower along the curve.

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