http://nz.biz.yahoo.com//090701/16/d4zh.html
* Aussie retreats as mixed economic data dampens risk
demand
* RBA seen holding rates at 3 percent on July 7
SYDNEY, July 1 (Reuters) - The Australian dollar retreated
from intra-day highs on Wednesday as a mixed bag of economic
data at home and abroad cast doubt on the strength of a global
recovery, tempering demand for riskier assets.
The Aussie AUD=D4 retreated to $0.8034, from an intra-day
high of $0.8078, and down from $0.8136 seen here late Tuesday.
It was steady on the yen at 77.66 yen AUDJPY=, compared to
Tuesday's 77.86.
The local dollar is now hovering in the middle of a range
of $0.7790-$0.8265 that has held since late May. Charts show it
is supported at around $0.7985, with resistance around $0.8155.
Domestic data showed retail sales jumped 1 percent in May,
twice the market forecast, but other data showed approvals to
build new homes slumped 12.5 percent in May, confounding
forecasts for a 3.3 percent rise. [ID:nSP479300]
On balance, the data was seen backing market speculation
the Reserve Bank of Australia (RBA) will keep rates steady at a
record low of 3 percent at its next policy meeting on July 7,
with any rate hikes likely to be later rather than sooner.
"We continue to see the RBA on hold from here, but with the
first hike in rates not until early 2011," UBS economists said
in a research note.
Australia's overnight index swaps AUDOIS show investors
are betting the RBA will hold rates steady at 3 percent next
week.
Analysts said mixed data from abroad dragged on the Aussie
too, and knocked Asian stock markets lower.
Japanese business sentiment improved less than expected in
June, while China's official purchasing managers' index edged
up to 53.2 in June, from 53.1 in May. [ID:nSP514345]
Although the Chinese data showed the manufacturing sector
is still expanding, some analysts said they had expected a
stronger reading.
"There's some opportunistic selling. China's data was a
little bit disappointing," said Katie Dean, an ANZ analyst.
Going into the third quarter, we expect the Aussie to pull back
to between $0.7650-$0.7950 as there will be consolidation in
the global economy," Dean said.
Australian bill and bond futures firmed as the weak local
building approvals data offered support.
The September bill future contract YBAc1 rose 0.05 points
to 96.84.
Three-year bond futures YTTc1 added 0.05 points to 95.30,
while ten-year bond futures YTCc1 rose 0.02 points to 94.52.
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