(RTTNews) - The Australian and New Zealand  dollars decline against their major rivals on Tuesday morning in Asia as most Asia-pacific stocks tumbled on renewed concerns over the euro-zone debt worries, prompting risk averse traders to flee from high-yielding currencies.

Tracking cues from Wall Street, where stocks tumbled overnight amid concerns about debt worries in Europe, the Australian stock market is trading notably lower today.

Front line stocks, with the exception of a select few from the healthcare and consumer staples sectors, are mostly down in negative territory. Financial, energy and materials stocks are among the notable losers.

The benchmark S&P/ASX 200 index, which tumbled to 4,316.5 in early trades, is currently down 58.4 points or 1.3% at 4,337. The broader All Ordinaries index is trading at 4,359, down 53.8 points or 1.2% from its previous close.

New Zealand's NZX 50 Index is currently losing 45.32 points, or 1.52%, To 3,014.78 and New Zealand's NZX All Capital Index is presently down 40 points, or 1.30%, to 3,048.

Among other markets in the Asia-Pacific region, Japan, Malaysia, South Korea, New Zealand, Taiwan and Singapore are down with notable losses, while Shanghai is down marginally.


The prospect of the Greek debt contagion spreading to Spain and Portugal remained on traders' minds, raising fears that the global economic recovery could be derailed without much participation from Europe.

Over the weekend, the Spanish government stepped in to save a regional savings bank, further undermining confidence in the stability of European financials.

The International Monetary Fund supported Spain's plans to rein in its budget deficit with the deepest spending cuts in three decades and urging to take more steps to overhaul its ailing banks, adding to speculation financial institutions in the area face more losses.

The Australian dollar fell to a 4-day low of 0.8174 against the US dollar around 10:10 pm ET and a move below its May 21st low of 0.8075 could set its weakest level in nearly 10-months. The aussie-buck pair that closed yesterday's deals at 0.8267 is presently quoted at 0.8192.

The aussie also reached as low as 1.5050 against the euro and 73.62 against the yen at the same time and this may be compared to yesterday's closing quotes of 1.4973 and 74.65, respectively. On the downside, the aussie may find near-term support levels at 1.5130 against the euro and 73.50 against the yen.

The New Zealand dollar slipped to a 4-day low of 0.6671 against the US dollar and 60.0 against the Japanese yen around 12:00 am ET, compared to yesterday's closing values of 0.6694 and 60.45, respectively. If the kiwi weakens further, it may find support levels at 59.50 against the kiwi and 0.6610 versus the buck.

Against the euro, the New Zealand dollar saw choppy trend and moved in a range-between 1.8505 and 1.8360. The euro-kiwi pair that closed yesterday's deals at 1.8502 is presently quoted at 1.8446.

On the flip side, the New Zealand dollar edged slightly higher against the Australian dollar in the session. The aussie-kiwi pair is presently quoted at 1.2269, compared to 1.2363 hit late New York Monday.

Inflation expectations among business managers in New Zealand rose sharply in the June quarter, the latest quarterly business expectations survey report from the Reserve Bank of New Zealand showed today.

Survey respondents expect the average one-year-ahead inflation rate to rise to 2.9% from 2.1%, while the two-year-ahead inflation rate was slightly revised up to 2.8% from 2.7%.

Looking ahead, the Swiss UBS consumption indicator for April, Italian consumer confidence for May and retail sales for March, UK's first quarter GDP and the euro-zone industrial new orders data for March are expected in the upcoming European session.

Across the Atlantic, S&P/Case-Shiller home prices for March, consumer confidence data and the Richmond Fed's manufacturing index-both for May are expected in the North American session.