Markets

A$ & NZ$ perk up after China data

Published July 24, 2012 Updated July 24, 2012 04:52am

The data helped offset worries about the euro zone debt crisis, which earlier had investors chasing safety rather than yield. That had seen Australian govt bond yields fall to their lowest in at least a half a century.

The Aussie reaches a session high of $1.0293 after the Chinese data, pulling up from a one-week low of $1.0244. It is still some way off a 2-1/2 mth high of $1.0445 set last week.

China is Australia's single largest export market and developments there tend to affect the Aussie.

Local attention on a speech from Reserve Bank of Australia (RBA) Governor Glenn Stevens titled "The Lucky Country" at 0305 GMT. Stevens likely to remain resolutely optimistic about the Australian outlook in the face of global gloom.

NZ dollar, the worse performer overnight of major currencies, also rises to session high around $0.7908, recovering some lost ground from its near two-week low of $0.7866.

Kiwi still facing downward pressure, with immediate support around $0.7860 and then a stronger level at $0.7840, late-June lows. Topside capped initially at $0.7925.

Euro zone's woes and offshore developments to drive kiwi ahead of Thursday's Reserve Bank of NZ's rate review, which is expected to see benchmark rate held at a record low 2.5 pct.

The euro slips against the Antipodeans, having trimmed some of its recent hefty losses overnight. Last at A$1.1788 and NZ$1.5339. Antipodeans also slightly firmer vs the yen on the day.

NZ government bonds a touch firmer in safety bid, sending yields 3 basis points lower along the curve. The benchmark 10 year bond just above multi-decade lows seen in June.

Australia's 10-year govt bonds yielding 2.723 pct , edging up from a historic low around 2.682 pct.

Australian debt futures flat to softer, with the three-year contract down 0.020 points at 97.880 and the 10-year contract 0.005 points lower at 97.300.

Copyright Reuters, 2012