Fears about the zone debt woes showed few signs of dissipating on Thursday and weighed on Australian and New Zealand dollars, while a less hawkish-sounding the Reserve Bank of New Zealand (RBNZ) cooled rate hike expectations. The Aussie eased 0.5 percent to $1.0215, having lost 4 percent in the past two weeks due mainly to global fears.
The New Zealand dollar avoided testing a one-month low, dipping to a low of $0.8121, a cent lower on the day, as the prospect of rates on hold for longer as well as the broader eurozone debt worries weighed on sentiment. It initially fell around a quarter of a cent.