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Aussie dlr hurt by soft retail sales, NZD edges up

Wednesday, 3 Oct 2012 | 10:36 PM ET

WELLINGTON/SYDNEY, Oct 4 (Reuters) - The Aussie dollar fell across the board on Thursday and hovered around one-month lows against the U.S. dollar as subdued retail sales data added to the case for further rate cuts, while the New Zealand dollar edged up.

* The Australian dollar slips to a low of $1.0182, its weakest since Sept 6 after Australian retail sales edged up 0.2 pct in August, against forecasts of a 0.4 pct gain.

* The meagre rise encouraged investors to wager on more rate cuts with interbank futures pricing a 64 percent chance of a rate cut to 3.0 percent next month.

* The Reserve Bank of Australia (RBA) eased by 25bp on Tuesday, as a slowdown in China, falling export prices and a high currency all combined to darken the economic outlook.

* Aussie last at $1.0198, having shaved 1.7 pct this week. Key support seen at $1.0165, the September low.

* Also weighing is pressure on the crosses. Euro leaps to A$1.2644 , its highest since June 11, showing a gain of around 10 cents since a trough in August.

* The Aussie skids 0.3 pct against the kiwi to NZ$1.2420 , having touched a year-low of NZ$1.2361 on Tuesday.

* Aussie also depressed vs sterling and Swissy, hovering near three-month lows .

* The New Zealand dollar edges up to $0.8200, helped by exporters bids, from $0.8178 early. It was dragged down to $0.8175 overnight in the downdraft of the Aussie.

* The kiwi sitting on support level at the Sept. 24 and 26, double low at $0.8184, below which is the 50-day MA at $0.8140, with the topside capped at $0.8265.

* Other data in Australia showed approvals to build new homes rose 6.4 pct in August, but that followed a steep 21 pct plunge the month before and did nothing to change the subdued outlook for home construction.

* Australian government bond futures retreat from two-month highs, with the three-year contract down 0.04 points to 97.700, while the 10-year contract also eases 0.055 points to 97.130.

* New Zealand government bonds lower, with yields up to three basis points higher in the long end.

((Australia/New Zealand bureaux)(+61 2 9373 1800/+64 4 802 7980))

Keywords: MARKETS AUSTRALIA NEWZEALAND/FOREX