SYDNEY/WELLINGTON, April 17 (Reuters) - The Australian and New Zealand dollars were under pressure on Tuesday, as the Reserve Bank of Australia confirmed it would consider cutting rates in May while concerns over Spain's finances continued to simmer. The Aussie at $1.0330, within sight of Monday's lows of $1.0311. Traders report buyers ahead of $1.0310 with stops below $1.0290. It dipped after the release of the minutes of the Reserve Bank of Australia (RBA)'s April policy meeting. It repeated it would consider cutting rates in May if inflation data, due out next week, proved benign. Markets have already nearly fully priced in a cut next month. Interbank futures imply a 90 pct chance of a 25bp easing in May and a total of 85.5 bps in cuts by the end of the year. The NZ dollar softer at around $0.8155 from $0.8206 in NY. It was hit overnight after media reports quoted NZ Prime Minister John Key telling business leaders in Jakarta the kiwi was overvalued, and that he was considering ways to resist such strength. Kiwi resistance found at $0.8253, the 55-day MA, while support sits around $0.8150, with a break below opening the door to $0.8090, its 200-day MA. Aussie and the kiwi slip against the safe-haven yen, having lost 1 pct on Monday. Aussie last at 83.18 yen
, well off a peak of 84.80 last week. The kiwi at 65.66 yen , from a high of 67.48 on Friday. They also lost out against the euro, which bolted higher across the board on Monday in a move that baffled most traders. The euro holds onto gains at A$1.2685 , from a low of A$1.2563, and pushes to a one-week high of NZ$1.6068 against the kiwi. Spanish 10-year government bond yields rose above 6 percent for the first time since the beginning of December, fuelling concerns Madrid could fail to meet deficit targets as the country acknowledged it has probably tipped into its second recession since 2009. The kiwi underperforms the Aussie , which was last at NZ$1.2654, rising from NZ$1.2570 in late local trade. NZ government bonds were flat in line with U.S. Treasuries. Australian debt futures run into profit-taking following recent hefty gains, though they remain near 2-1/2-month peaks. The three-year contract eases 0.03 points to 96.800, while the 10-year contract sheds 0.02 points to 96.240.
(Australia and New Zealand bureaux)
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.