RTRS: Australia, NZ dlrs subdued as long positions pared
WELLINGTON, April 19 (Reuters) - The Australian and New Zealand dollars were subdued Monday as the Goldman Sachs charges served as an excuse to trim long positions in leveraged growth-related plays in currencies, commodities and stocks.
* The U.S. Securities and Exchange Commission charged Goldman Sachs with fraud over the structuring and marketing of a debt product, sending Wall Street more than 1 percent lower. For more see [ID:nN16121493]
* The action turned investors against risky investments such as stocks and high yield currencies and drove demand for the perceived safety of the U.S. dollar and Japanese yen.
* The Australian dollar was pinned at $0.9215, having ended at $0.9250 in New York on Friday after suffering its biggest daily loss in 10 weeks.
* It dipped as deep as $0.9204 at one stage before bouncing from there, adding to talk somebody was protecting a double-no-touch option with barriers at 92 and 94 cents.
* More support was seen at $0.9165, a low from April 6, and $0.9131, with resistance at hourly highs around $0.9273 and $0.9334.
* Aussie fell particularly hard against the safe-haven yen, down at 84.85 yen from near 97 early on Friday.
* The kiwi was up about 20 pips from opening levels to be at $0.7095, with bargain-hunters seen interested in the kiwi at dips towards $0.7050. But struggling to attack resistance at $0.7125.
* The Aussie also lost ground to the Kiwi , slipping to NZ$1.2974 and threatening support around NZ$1.2940.
* Growth sensitive currencies helped somewhat by report saying the IMF will raise global growth forecasts this year. [ID:nTOE63H01P]
* A New Zealand survey showed service sector activity levels at their highest in more than two years, pointing to an increase in economic activity. [ID:nSGE63F012]
* Asian share markets tracked losses on Wall Street, with the Nikkei (.N225
NIKKEI 225 INDEX19 April,2010
19/04/2010 15:41 Sydney, Australia.
Value Change % Change
10898.68 -203.50 -1.83%
Australian indices
International indices
, 10898.68, -203.50, -1.83%) off 1.6 percent. Chinese shares <.SSEC> were further hit by fresh curbs on property lending aimed at cooling speculation and home prices.
* Commodities likewise broadly softer with oil down $1.37 at $81.87 <0#CL:> and gold at $1,136 , after losing over $20 on Friday.
* NZ data calendar includes first quarter consumer inflation data on Tuesday, with expectations of a rise of 0.6 percent on the previous quarter. That would take the annual rate to 2.2 percent, still comfortably within the central bank's target band. See [NZ/POLL]
* Other NZ data will include up-to-date snapshots of domestic demand will be available in ANZ-Roy Morgan's consumer confidence survey, migration, and credit card sales.
* Australia sees Reserve Bank of Australia minutes of the April rate meeting on Tuesday, with trade numbers and vehicle sales also due this week. RBA Governor Glenn Stevens to give a speech on Friday.
* Three-year Australian bond futures were up 0.090 points at 94.700, while 10-year futures added 0.065 points to 94.235.
* NZ debt holds gains on safety bid with yields a tick or two lower along the curve. <0#NZTSY=> ((Australia/New Zealand bureaux; +61 2 9373 1800/+64 4 471 4234)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))