* Australian interbank futures now pricing in a 50-50 chance of a rate cut this year, up from a one in three chance last week.

* The Aussie hits a low of $1.0419, shedding about two thirds of a cent from late New York levels. It last trades at $1.0440, with support pegged at $1.0390, the April 12 low.

* The NZ dollar loses about a full cent from late New York levels to a low of $0.8010. Last at $0.8036 and seen consolidating between $0.8000 and $0.8200.

* New Zealand's trade balance was less than expected in May, helping to bring the annual surplus down toward NZ$1 billion.

* On the cross rate , the Aussie climbs to around NZ$1.3000, putting further distance from Friday's low around NZ$1.2851.

* Focus still on Europe as Greece needs parliament's nod to get more bailout funds. If funds are not secured, Greece could default on its massive debt, which would roil global markets.

* Worries about Greece caused the euro to drop to a record low vs the Swiss franc around 1.1800 on Friday. It last trades at 1.1817 francs . On the dollar, it reaches one-week lows at $1.4104, before recovering some ground to $1.4129 .

* Asian stocks are in the red, with US crude, copper also pressured by risk aversion.

* The diary looks pretty bare this week for Australia, while New Zealand has the closely watched National Bank business outlook survey due on Thursday.

* NZ bond yields follow US Treasury lower, with local yields down around 2.5 bps.

* Australian bond futures higher, with the three year up 0.08 points at 95.430. The 10-year contract hits an eight-month high of 94.980.

Copyright Reuters, 2011