WELLINGTON/SYDNEY, March 7 (Reuters) - The New Zealand dollar hovered near one-year lows versus the euro and a five-month low against the dollar on Monday, remaining on the backfoot ahead of a possible interest rate cut this week.
* Escalating violence in Libya keeping investors on edge. Oil prices climbed to their highest in more than two years as fighting in Libya intensified, raising fears of disrupted supply from the Middle East, and sending stock markets lower. For more on Libya see
* The kiwi dollar last at $0.7370, after falling as low as $0.7339, its worst since Oct 1. Support for the kiwi seen from $0.7328, its lowest on Oct 1, while resistance starts at $0.7427.
* Focus this week for kiwi investors is the central bank's interest rate decision on Thursday, with the bank seen likely to cut rates by as much as 50 basis points in an attempt to cushion the economy from the short term effects of the quake. For a preview see
* The fallout from the devastating Christchurch earthquake continues to drag on the kiwi, with Treasury estimates released on Sunday putting the cost at as high as $15 billion, with 1.5 percent wiped off the country's GDP over the next five years.
* The Australian dollar last trades at $1.0150, having dipped to one-week lows at $1.0075 on Friday. Immediate support for the Aussie around $1.0060, with resistance seen at $1.0203, the March 3 peak.
* Against the kiwi, Aussie trades at NZ$1.3766, within a whisker of a 19-year high hit on Friday at NZ$1.3770. Investors continue to favour the Aussie against the kiwi given the diverging interest rate outlook.
* In broader currency market, the euro remains the dominant theme after ECB President Trichet last week flagged possibility of an interest rate hike as soon as next month.
* The euro hit A$1.3849 on Friday, its best since Jan 28, and last stands at A$1.3782. Against the kiwi , the single currency touches a near one-year high at NZ$1.9012, before retreating slightly to NZ$1.8969.
* U.S. jobs data came in a touch better than expected on Friday, but disappointed investors who had hoped for an even stronger number, keeping the greenback out of favour.
* Australian job ads are due at 0030 GMT ahead of the closely watched employment data on Thursday.
* New Zealand government debt prices start the week higher, tracking gains in U.S. Treasuries.
* Australian bond futures were also firmer, with the three-year contract up 0.03 points at 94.870 and the 10-year contract 0.045 points higher at 94.460.
(Australia/New Zealand bureaux) Keywords: MARKETS AUSTRALIA NEWZEALAND FOREX/BONDS (+61 2 9373 1800/+64 4 471 4234) COPYRIGHT Copyright Thomson Reuters 2011. 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.
* Escalating violence in Libya keeping investors on edge. Oil prices climbed to their highest in more than two years as fighting in Libya intensified, raising fears of disrupted supply from the Middle East, and sending stock markets lower. For more on Libya see
* The kiwi dollar last at $0.7370, after falling as low as $0.7339, its worst since Oct 1. Support for the kiwi seen from $0.7328, its lowest on Oct 1, while resistance starts at $0.7427.
* Focus this week for kiwi investors is the central bank's interest rate decision on Thursday, with the bank seen likely to cut rates by as much as 50 basis points in an attempt to cushion the economy from the short term effects of the quake. For a preview see
* The fallout from the devastating Christchurch earthquake continues to drag on the kiwi, with Treasury estimates released on Sunday putting the cost at as high as $15 billion, with 1.5 percent wiped off the country's GDP over the next five years.
* The Australian dollar last trades at $1.0150, having dipped to one-week lows at $1.0075 on Friday. Immediate support for the Aussie around $1.0060, with resistance seen at $1.0203, the March 3 peak.
* Against the kiwi, Aussie trades at NZ$1.3766, within a whisker of a 19-year high hit on Friday at NZ$1.3770. Investors continue to favour the Aussie against the kiwi given the diverging interest rate outlook.
* In broader currency market, the euro remains the dominant theme after ECB President Trichet last week flagged possibility of an interest rate hike as soon as next month.
* The euro hit A$1.3849 on Friday, its best since Jan 28, and last stands at A$1.3782. Against the kiwi , the single currency touches a near one-year high at NZ$1.9012, before retreating slightly to NZ$1.8969.
* U.S. jobs data came in a touch better than expected on Friday, but disappointed investors who had hoped for an even stronger number, keeping the greenback out of favour.
* Australian job ads are due at 0030 GMT ahead of the closely watched employment data on Thursday.
* New Zealand government debt prices start the week higher, tracking gains in U.S. Treasuries.
* Australian bond futures were also firmer, with the three-year contract up 0.03 points at 94.870 and the 10-year contract 0.045 points higher at 94.460.
(Australia/New Zealand bureaux) Keywords: MARKETS AUSTRALIA NEWZEALAND FOREX/BONDS (+61 2 9373 1800/+64 4 471 4234) COPYRIGHT Copyright Thomson Reuters 2011. 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.