SYDNEY/WELLINGTON: The Australian and New Zealand dollars came under pressure on Wednesday on profit-taking after solid US retail data lifted the greenback and stocks. The Aussie 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. Joe Capurso, a strategist at Commonwealth Bank of Australia, forecasts the currency under 89 US cents by the end of the week, partly because of downside risks he expects from a local jobs report due out on Thursday. 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 . The New Zealand dollar 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, while scaling a near six-year high of 87.45 yen before trimming gains to around 87.15 yen. The kiwi 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 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 down 3 ticks at 96.970. The 10-year contract lost 5 ticks to 95.810, having climbed to a two-month peak Tuesday.

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