Australia, NZ dlrs get reprieve on EU crisis deal

SYDNEY/WELLINGTON, May 10 (Reuters) - The Australian and New Zealand dollars bounced on Monday after the announcement of a 750-billion euro aid deal to contain Greece's debt crisis induced a bout of short-covering.



* Australian dollar up at $0.9028, a good climb from a low of $0.8915 seen here early Monday, and $0.8828 seen here late Friday.

* Traders said positive risk reversal trades in currency options suggested the Aussie's bounce may last for awhile yet, but it remains to be seen if the trend has legs to run in the longer term.

* Resistance seen setting in around $0.9050, the 50 percent Fibonacci retracement level of its drop from the mid-April high of $0.9389 to last week's low of $0.8711. Charts suggest support is around $0.8925 for now.

* New Zealand dollar firm at $0.7245, a sizeable gain from $0.7169 seen early Monday. Support seen at $0.7100, with resistance at $0.7250, then $0.7265.

* The European Union agreed on a 500 billion-euro ($670 billion) emergency fund on Monday to protect highly indebted eurozone countries from the 'wolfpack' of financial markets.

* The IMF was expected to contribute around 250 billion euros to the package. Importantly, the ECB chipped in by saying it would buy euro zone sovereign debt, providing crucial liquidity to markets

* Euro bounced and stocks jumped as EU finance ministers settled on what they hoped would be a package big enough to prevent Greece's debt crisis from spreading and stave off any threat to the global economic recovery.

* Aussie and kiwi both pull away from recent highs against the euro, as the single currency gains across the board. Both currencies up against the safe-haven yen

* The Aussie Kiwi cross-rate holds steady about A$1.2480.

* The main events in Australia this week are the Federal Government's budget, due to be delivered on Tuesday, and jobds numbers on Thursday.

* A survey released on Monday showed New Zealand house price growth stalled in April, as buyers were wary of upcoming changes to property taxation.

* A separate survey on the housing market will be released on Friday, with retail sales data for the March quarter also due this week.

* Government debt yields were up sharply on a reversal of safe-haven flows, with U.S. 10-year yields up 12bps at 3.55 pct. Australian three-year bond futures slid 0.170 points to 94.800 and the 10-year contract fell 0.135 points to 94.385.

* NZ government bonds were mixed, with shorter term maturities dipping while longer-dated debt firmed.

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