WELLINGTON, May 12 (Reuters) - The New Zealand and Australian dollars were softer on Wednesday as they were caught by renewed investor concerns about Europe's debt crisis after the initial enthusiasm for the $1 trillion rescue package faded.
* NZ dollar resumes local trading around $0.7170/80, near its level late on Monday, having traded between $0.7165 and $0.7212 overnight.
* Aussie dollar also close to Monday's late local level around $0.8960/70, having traded $0.8934-0.9021 during the offshore session.
* The Australasian currencies caught by the euro's fall to below $1.2700 as questions remain about the operation of the rescue fund and whether weaker euro zone economies can keep their fiscal positions under control. NZ and Aussie dollars also grind higher on the cross against the euro.
* Sterling rises to a session high against the euro and also added to gains against the dollar after Conservative leader David Cameron becomes Britain's new prime minister. See Kiwi retreats against sterling to 47.85 pence from 48.77 pence high, while Aussie around 59.8 pence from around 60.80.
* Aussie dollar held steady after the Federal government's 2010/11 budget delivered much as expected, although bond futures pared losses on the prospect of reduced bond issuance. See
* Soft equity markets also show a return to a more cautious attitude to risk, which also apparent in coming off highs against the yen, which gains from safety bid.
* NZ government debt yields lower, with the 10-year benchmark yield off 2 basis points at 5.85 percent. NZ swap yields a couple of ticks lower.
* Three-year Australian bond futures down 0.04 points to 94.87, and ten-year futures 0.05 points lower at 94.46.
((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.
* NZ dollar resumes local trading around $0.7170/80, near its level late on Monday, having traded between $0.7165 and $0.7212 overnight.
* Aussie dollar also close to Monday's late local level around $0.8960/70, having traded $0.8934-0.9021 during the offshore session.
* The Australasian currencies caught by the euro's fall to below $1.2700 as questions remain about the operation of the rescue fund and whether weaker euro zone economies can keep their fiscal positions under control. NZ and Aussie dollars also grind higher on the cross against the euro.
* Sterling rises to a session high against the euro and also added to gains against the dollar after Conservative leader David Cameron becomes Britain's new prime minister. See Kiwi retreats against sterling to 47.85 pence from 48.77 pence high, while Aussie around 59.8 pence from around 60.80.
* Aussie dollar held steady after the Federal government's 2010/11 budget delivered much as expected, although bond futures pared losses on the prospect of reduced bond issuance. See
* Soft equity markets also show a return to a more cautious attitude to risk, which also apparent in coming off highs against the yen, which gains from safety bid.
* NZ government debt yields lower, with the 10-year benchmark yield off 2 basis points at 5.85 percent. NZ swap yields a couple of ticks lower.
* Three-year Australian bond futures down 0.04 points to 94.87, and ten-year futures 0.05 points lower at 94.46.
((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.