WELLINGTON, May 11 (Reuters) - The New Zealand and Australian dollars traded off their highs on Tuesday as the euphoria about the mammoth $1 trillion aid deal to contain Europe's debt crisis started to fade.
* The New Zealand dollar resumes local trading around $0.7210, having ranged as high as $0.7295 in the offshore session before retracing. Support seen at $0.7175, with resistance at $0.7250, then $0.7265.
* The Australian dollar also trims its gains to around $0.9020/30 after it had hit an overnight high of $0.9077. Aussie seen as likely to struggle above $0.9100 in the short term.
* The NZ and Aussie dollars unlikely to repeat Monday's strong gains as market looks to find its feet and return to something approaching normality.
* The Euro initially soared after the announcement of the rescue package to prevent the spread of the European debt crisis, but then trimmed its gains with concerns lingering about the package and how quickly it can be put into action. .
* Moody's Investors Service on Monday said it may still downgrade Portugal's investment grade credit rating and drop Greece's rating to junk status.
* NZ dollar benefits from improved appetite for risk, makes gains against the yen to establish itself above 67.00, with support seen at the 21 day moving average base of 66.70.
* Australian federal government budget to be delivered later on Tuesday with expectation it will show a return to surpluses sooner than expected. See
* NZ debt largely flat, with slight soft tone in bonds, while swap yields a touch lower apart from five year swap which is 3 basis points lower.
* Australian bond futures flat. Three-year futures up 0.01 points at 94.82, and ten-year futures steady at 94.435.
((Wellington newsroom tel +64 4 471-4234, fax +64 4 473-6212
wellington.newsroom@reuters.com)) Keywords: MARKETS AUSTRALIA NEWZEALAND FOREX/BONDS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* The New Zealand dollar resumes local trading around $0.7210, having ranged as high as $0.7295 in the offshore session before retracing. Support seen at $0.7175, with resistance at $0.7250, then $0.7265.
* The Australian dollar also trims its gains to around $0.9020/30 after it had hit an overnight high of $0.9077. Aussie seen as likely to struggle above $0.9100 in the short term.
* The NZ and Aussie dollars unlikely to repeat Monday's strong gains as market looks to find its feet and return to something approaching normality.
* The Euro initially soared after the announcement of the rescue package to prevent the spread of the European debt crisis, but then trimmed its gains with concerns lingering about the package and how quickly it can be put into action. .
* Moody's Investors Service on Monday said it may still downgrade Portugal's investment grade credit rating and drop Greece's rating to junk status.
* NZ dollar benefits from improved appetite for risk, makes gains against the yen to establish itself above 67.00, with support seen at the 21 day moving average base of 66.70.
* Australian federal government budget to be delivered later on Tuesday with expectation it will show a return to surpluses sooner than expected. See
* NZ debt largely flat, with slight soft tone in bonds, while swap yields a touch lower apart from five year swap which is 3 basis points lower.
* Australian bond futures flat. Three-year futures up 0.01 points at 94.82, and ten-year futures steady at 94.435.
((Wellington newsroom tel +64 4 471-4234, fax +64 4 473-6212
wellington.newsroom@reuters.com)) Keywords: MARKETS AUSTRALIA NEWZEALAND FOREX/BONDS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.