SYDNEY/WELLINGTON (Reuters) - The Australian and New Zealand dollars fell for a third straight session against the euro on Friday as the common currency got a lift from easing political uncertainty in Italy, while they stayed around recent ranges against the greenback.
Trading was cautious as global trade war concerns revived after the United States moved ahead with tariffs on aluminium and steel imports from Canada, Mexico and the European Union, ending the two-month exemption it had given earlier.
The Australian dollar <AUD=D4> was last down 0.3 percent at $0.7542 and is set to end the week barely changed. The Aussie has found itself in a $0.7448-$0.7606 range in the past three weeks. Analysts see critical resistance around 76 U.S. cents.
Analysts expect the Aussie to remain trapped in that band for a while yet.
"With no major moves forecast in either rates or commodities, neither are likely to emerge as a dominant driver for the AUD," forex strategist at ANZ said.
"This leaves the AUD vulnerable to risk appetite," they added.
"In the near term, we think it can still catch up to the decent performance of other risk currencies, but ultimately, risk appetite will be its undoing, driving the AUD back to testing its cycle lows."
Global risk appetite got knocked earlier in the week after Italy's two anti-establishment parties scrapped plans to form a coalition. That raised the prospect of a general election, stoking fears such a vote will effectively be a referendum on the country's euro membership.
The two anti-establishment parties agreed on their pick for pivotal economy ministry after their initial, eurosceptic candidate had been rejected by the head of state.
The euro rose to A$1.5484 <EURAUD=> against the Australian dollar and was set for its first weekly gain after five successive losses.
In New Zealand, the kiwi dollar <NZD=D4> was steady at $0.6995, holding on to the previous day's gains when it soared to a three-week high as global risk appetite improved.
Investors shrugged off data showing the first fall in the country's terms of trade index in 18 months, though analysts warned the volatile global outlook meant the currency was unlikely to rise much further.
"The kiwi is proving resilient and looks biased higher near-term," the ANZ analysts said. "However, the extent of cross currents that exist make it difficult to believe that any rally will be substantial."
The currency was poised to rise 1.1 percent on the week, its strongest weekly gain since mid-February.
(Editing by Jacqueline Wong)
