* Aussie supported by upbeat China trade data
* RBNZ confirms has intervened to lower NZ dollar
* No details given on when intervention took place
By Masayuki Kitano
SINGAPORE, May 8 The Australian dollar pulled up
from a two-month low and the yen weakened on Wednesday, after
better-than-expected Chinese trade numbers eased some concern
about slowing growth in the world's second-largest economy.
A big underperformer was the New Zealand dollar, which took
a hit after the head of the country's central bank said it had
intervened to try and restrain the strength of the currency.
Data showing that China's exports and imports grew more than
expected in April from a year earlier helped support the
Australian dollar and weighed on the yen, although doubts
remained about the strength of real demand.
The Aussie dollar is sensitive to economic data out of
China, Australia's biggest export destination.
The Australian dollar last fetched $1.0182, steady
on the day.
Still, that was up from a two-month low of $1.0155 set this
week after the Reserve Bank of Australia reduced the cash rate
by a quarter point to a record low 2.75 percent on Tuesday, and
left the door open to more easing.
Against the yen, the Aussie dollar held steady at 100.83 yen
, up from an intraday low of about 100.36 yen.
"The Australian dollar bounced a bit, as the bias had been
completely toward the downside and there had been some
accumulation of (short) positions," said Hiroshi Maeba, head of
FX trading Japan for UBS in Tokyo, referring to the Aussie
dollar's reaction to the Chinese trade data.
That helped lend support to cross/yen pairs and the U.S.
dollar versus the yen as well, Maeba said.
There has also been some dollar buying by Japanese importers
and traders taking fresh long positions in the greenback, but
the dollar could also start to see some options-related offers
on the top side, Maeba added.
The U.S. dollar inched up 0.1 percent to 99.05 yen,
having rebounded from an intraday low near 98.64 yen.
On the dollar's downside, there are said to be some
stop-loss dollar offers near 98.50 yen, said a trader for a
Japanese bank in Singapore.
The greenback, which hit a four-year high of 99.95 yen in
April after the Bank of Japan unveiled its drastic monetary
stimulus, has met stiff resistance near the psychologically key
100 yen level.
NEW ZEALAND DOLLAR
The New Zealand dollar was down 0.6 percent at $0.8401
, having dropped to as low as $0.8360 earlier on
The kiwi dollar fell after the Royal Bank of New Zealand
said it had been selling the currency to limit its strength.
"There has been intervention," RBNZ Governor Graeme Wheeler
told a parliamentary committee.
No details were given on the timing of the currency market
operations but deputy governor Grant Spencer added: "It will
become evident in the data, in our balance sheet."
Elsewhere, the euro edged up 0.1 percent to about $1.3088
, with the near-term focus on German industrial production
data coming up later in the day.
Analysts at BNP Paribas suspect the euro has room to rise,
believing a strong reading on German industrial orders released
on Tuesday has probably reduced the risks of a downside surprise
for today's German production release.
"We think risk-reward remains attractive for EUR longs
heading into the data," they wrote in a note.