daytrades oct 12 afternoon, page-156

SYDNEY/WELLINGTON, Oct 12 (Reuters) - The Australian and New
Zealand dollars fell on Tuesday, squeezed by profit-taking and a
short-covering bounce in the U.S. dollar, although many thought
the pull-back would likely be temporary.

* Australian dollar fell to $0.9792, down from
$0.9856 seen here late Monday and well off a 28-year high of
$0.9918 hit last week.

* Support is at $0.9730 and $0.9685, the 50 percent and 61.8
percent Fibonacci retracement levels of its rally from $0.9543 to
the 28-year high. Resistance is at $0.9900.

* Even though the pull-back in Aussie may frustrate traders
with stop-loss buy orders above $0.9900, many still think the
currency is on track to hit parity given Aussie's high-yield
allure.

* The U.S. dollar rallied overnight as some investors saw the
recent decline had gone too far, too fast, although sentiment
still bearish on expectations of quantitative easing.

* But the U.S. dollar still struggling against the yen,
keeping alive talk of intervention from Tokyo after the pair hit
a 15-year low of 81.36 early on Monday, and last trading about
the 82 yen.