Aussie dlr pinned at one-month low after rate cut, yr low vs NZ$
WELLINGTON/SYDNEY, Oct 3 (Reuters) - The Australian dollar languished around a one month low on Wednesday in the wake of the Reserve Bank of Australia (RBA) rate cut, while the New Zealand dollar sat at the bottom of its recent range amid conflicting signals on whether Spain will seek a bailout.
* The Australian dollar sits around $1.0260, its lowest since Sept 6, extending its slide after the RBA surprised many with a rate cut, which was not fully priced in. It traded a $1.0257 to $1.0323 range overnight.
* The RBA had been expected by many to wait until November for a cut, but a darker global background, falling export prices and a high currency tipped its hand.
* Interbank futures show near two-thirds chance of another cut in November. Overnight indexed swaps indicate the cash rate at around 2.70 percent in 12 months.
* Near term support for the Aussie seen at $1.0240/50, the Sept 6 low and 100-day moving average, and below that $1.0214. Top side seen capped at $1.0328, double lows of Sep 26/Oct 1.
* The New Zealand dollar resumes at $0.8270 from $0.8290 late on Tuesday, with a foray to a high of $0.8337 overnight.
* In the near term, the kiwi was seen supported around the 10-day moving average at $0.8260 and more solidly at $0.8240, with first hurdle higher expected at $0.8310 and then $0.8325.
* Euro gains against the U.S. dollar for a second straight session, pulling further away from recent three-week lows on growing expectations that Spain is ready to seek a bailout.
* Spain's Prime Minister quashes talk that it is about to request European aid, saying no such move is imminent. European officials had been saying on Monday a bailout request could come as early as next weekend.
* Uncertainty over the timing of the request keeps investors on edge with many selling the euro at higher levels. Rating agency Moody's soon-to-be announced review of Spain's rating, which could see it cut to junk status, adds to the mood.
* Euro notches hefty 1.2 percent gain vs Aussie to A$1.2580, just below its session high, while kiwi fares a little better at 0.3 percent down at NZ$1.5611 .
* Aussie also knocked lower vs Japanese yen, dipping 0.6 percent to 80.18 yen , while NZ dollar gains 0.2 percent on yen to 64.64 yen .
* Australia has trade data at 0130 GMT, with expectations for a deficit of A$700 million. A sharply lower figure could be another Aussie negative.
* The Aussie trims its losses against the kiwi to sit at NZ$1.2400 after sliding to a one-year low of NZ$1.2361, which is seen as the near term support level. The cross rate has lost more than 3 percent since a seven-month high in late July.
* Kiwi unmoved by results from latest auction by dairy giant Fonterra, which posts its first overall price fall in two months, down 0.9 percent, which may prices levelling out after rising close to 20 percent since mid-July.
* ANZ Bank's commodity price index on Tuesday recorded its biggest gain in 18 months in September, lifted by strong dairy prices.
* No other NZ data of any consequence this week leaving the currency to be driven by broader market themes and events.
* New Zealand government bonds were firmer, with yields three basis points lower along the curve.
* Australian government bond futures consolidate after the strong rally after the RBA. The three-year contract down 0.02 points to 97.680. The 10-year contract down 0.005 points to 97.120.
((Australia/New Zealand bureaux)(+61 2 9373 1800/+64 4 802 7980))
Keywords: MARKETS AUSTRALIA NEWZEALAND/FOREX