The Aussie and New Zealand dollars found a temporary footing on Tuesday thanks to short-covering, but still nursed hefty losses as the prospect of imminent EU ratings downgrades fed a bid for safe-havens like government debt. The Aussie dollar paused at $1.0090, from $1.0069 in New York, having slumped more than 1.2 percent since Monday.
Traders said the currency is primed to test key support at $1.0023, the 50 percent retracement of the $0.9664-$1.0382 move, ahead of another major barrier at $0.9944. The New Zealand dollar crawled back to $0.7640 in late trade, from $0.7628 in New York, having slipped to a two-week low of $0.7610 at one stage. Support for the kiwi was still seen around $0.7577, then $0.7511, with $0.7760 capping the topside as sellers lowered their expectations. The Aussie briefly touched a two-week trough of $1.0030 on reports China won't help the EU without meeting certain conditions and guaranteeing investments.