WELLINGTON/SYDNEY, Sept 21 (Reuters) - The Australian and New Zealand dollars pared losses on Friday but remained under pressure as a raft of soft data in China, the United States, and Europe renewed concerns about the global growth outlook. The Aussie around $1.0428 from Thursday's late local level of $1.0408. It touched a low of $1.0367 overnight, well off the five-month high of $1.0625 hit last week. A clean break below $1.0400 would target $1.0340, the 61.8 percent retracement of the move from $1.0165 to $1.0625, with resistance at around $1.0500. The New Zealand dollar fares better at around $0.8280 from Thursday's local close of $0.8251, as it retains a little glow after the previous day's solid growth data. Kiwi support initially at $0.8250, Thursday's intra-session low, and below that the overnight low of $0.8208, with $0.8304 seen capping the topside. Euro dips to a one-week low against the U.S. dollar even as Spain has a successful debt sale at the lowest cost since January. U.S. manufacturing suffers its weakest quarter in three years and conditions at European businesses worsened, surveys show on Thursday. The data follows an index measuring manufacturing activity in China steadying in September just off a nine-month low the month before, but the data points to a slowing economy.
The data did little to ease concerns about China's steel sector, the biggest in the world and the largest customer of Australia's iron ore. Interbank futures have narrowed the odds of an easing in the RBA's 3.5 percent cash rate, factoring a 60 pct probability of a cut in October. They are fully pricing in a move in November. The Aussie slips against a broadly firmer yen. It was last at 81.57 , unwinding all of Wednesday's rise to 82.94 which had come in reaction to a larger-than-expected easing from the Bank of Japan. The euro trims its gains on the Aussie to A$1.2428
from A$1.2486. It hit a three-month peak of A$1.2552 this week. Kiwi performs better on cross rates, up around 0.2 percent at 64.80 yen while the euro retreats nearly 1 percent to NZ$1.5638 just above a one-week low. Australia data free on Friday, New Zealand has minor numbers in shape of migration and credit card. Next week sees a flurry of RBA events -- financial stability report, and a couple of speeches by officials. New Zealand has data on trade, business sentiment, building. Australian debt futures renewed their decline, with the three-year contract down 0.04 points to 97.460. The 10-year contract eased 0.035 points to 96.830. New Zealand government bonds largely flat but with a hint of a bid tone at the long end of the curve.
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