Pacific currencies appreciation limited

Pre Asia opening, New Zealand dollar is falling against dollar, after the RBNZ said early Wednesday that despite economy continues to be hurt by the global financial crisis there's more scope for monetary policy to provide leverage to credit conditions and buttress the economy. Deputy Governor Grant also report that second-round effects of the global disruption will likely persist for some time. NZD/USD quotes at 0.6049 compared to 0.6030 American session close. Resistance levels at 0.6097 and 0.6127, 7-month high.

Australian dollar continues to be favored by rising gold prices thus appreciation should remain limited by recent highs around 0.77. RBA and Australian government are forecasting the worst budget deficit since WWII for 2009/10, and seems unlikely government to have much scope to take it further into deficit over the year ahead.