Australian dollar hit by U.S. data, kiwi near 6-year high vs yen

Wed, 15 Jan - 12:21pm

* Aussie off 1 pct vs USD, euro and kiwi since Tuesday

* NZD TWI still near 9-month peak, hits 5-yr high vs AUD

By Cecile Lefort and Naomi Tajitsu

SYDNEY/WELLINGTON, Jan 15 (Reuters) - The Australian and New Zealand dollars came under pressure on Wednesday on profit-taking after solid U.S. retail data lifted the greenback and stocks.

The Aussie AUD=D4 slipped to $0.8935, having shed nearly 1 percent overnight and pulling further away from a peak of $0.9087 set on Monday.

Recently, shorting the Aussie has become one of the most popular trades among currency speculators. Data from the Commodity Futures Trading Commission showed Australian net short contracts at 56,852 last week as U.S dollar net long positions rose to their highest in recent months on expectations of an improving economic outlook. News Search ID:nL2N0KK2AQ

Joe Capurso, a strategist at Commonwealth Bank of Australia, forecasts the currency under 89 U.S. cents by the end of the week, partly because of downside risks he expects from a local jobs report due out on Thursday. ECONAU

The Aussie dropped 14 percent last year in a move cheered by the Reserve Bank of Australia as it wants a lower currency to help boost trade-exposed sectors of the domestic economy.

Support was seen at $0.8922, the 61.8 percent retracement of the $0.8820-$0.9087 climb. Resistance was found around $0.9024.

The Aussie also slid more than 1 percent against the euro and kiwi overnight EURAUD=R AUDNZD=R .

The New Zealand dollar NZD=D4 fell to $0.8350, from $0.8375 in early trade and a three-month high of $0.8433 touched overnight.

The kiwi remained supported after a survey on Tuesday showing a jump in New Zealand business sentiment added to evidence the economy is growing strongly, and that interest rates will soon rise.

It hit a five-year high against the broadly struggling Aussie around NZ$1.0665 AUDNZD=R , while scaling a near six-year high of 87.45 yen NZDJPY=R before trimming gains to around 87.15 yen.

The kiwi =NZD pushed to a nine-month high against a currency basket of 79.24, not far from its post-float peak hit in April. Support was seen around $0.8335.

But the kiwi has failed to hold gains above $0.8400 given technical resistance around $0.8420, roughly around highs hit in November. Analysts said that a clean break above that level would be required for the momentum to continue.

"The main resistance levels are close at $0.8420-40 and should that give way, NZD is fairly open to the mid-$0.85s," ANZ analysts said in a note.

New Zealand government bonds 0#NZTSY= slipped, pushing yields as much as 3 basis points higher across the curve.

Australian government bond futures pared back recent gains with the three-year bond contract YTTc1 down 3 ticks at 96.970. The 10-year contract lost 5 ticks to 95.810, having climbed to a two-month peak Tuesday.

(Editing by Chris Gallagher)

((Cecile.Lefort@thomsonreuters.com)(+61 2 9373-1234)(Reuters Messaging: cecile.lefort.thomsonreuters@reuters.net))

Keywords: MARKETS AUSTRALIA/FOREX

URN: 
urn:newsml:reuters.com:20140115:nL3N0KP0YC:3
Topics: 
JP US NZ AU FRX ASIA REP DBT LEN RTRS INT CEN MCE MMT AMERS

Contact Us

Due to the security nature of our business, personal meetings are only by pre-arranged appointment.
Phone at any time on

1300 987 995

info@ausmint.com