Aussie & NZ$ hold ground, capped by China, stocks

SYDNEY/WELLINGTON: The Australian and New Zealand dollars consolidated near multi-week highs on Friday, with softer C
13 Oct, 2011

* Aussie steady around $1.0195, from $1.0198 in New York, having bounced from an overnight low of $1.0107.

* Having posted spectacular 8.5 pct gains from a 13-month low of $0.9388 just last Tuesday, Aussie looks set to test $1.0250, with support sitting around $1.0133.

* Aussie support also linked to solid jobs data on Thursday, with markets trimming the risk of a rate cut to 75 pct, from fully pricing.

* NZ dollar steady around $0.7963, from $0.7959 in NY, after an overnight low of $0.7890. Kiwi also has had a solid run, up almost 7 pct in 10 days.

* Still, kiwi may consolidate lower after failing to hold above 200-day moving average of $0.7960. Support seen around $0.7857, with attempts to assault $0.8000 possible.

* No major data due in Australia, while ANZ consumer confidence due in NZ. Markets now eyeing China's inflation data , after softer trade data from China on Thursday renewed concerns about the global outlook.

* Euro recovers losses, after edging lower on lagging worries about euro zone debt crisis. The euro has rallied on plans to tackle the region's debt woes.

* Wall Street lower, with the S&P 500 easing a touch after JPMorgan, the first major US bank to report earnings, said profits were hurt on the European debt crisis. The CRB commodity index , gold, copper and oil all lower.

* With risk taking a back seat, Aussie retreats to 78.36 yen from a near three-week high of 78.97 yen. Kiwi back to 61.10 yen from a three-week peak of 61.87 yen .

* Aussie near a three month high against the kiwi after the job data, holding around 1.2813.

* US Treasuries rose as some safety bids, pulling NZ government debt higher and sending local yields around 1 basis point down across the curve.

* Australian debt follows, with three-year futures contract 0.03 point higher at 96.160 and the 10-year 0.02 points up to 95.530.

Copyright Reuters, 2011

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