http://nz.biz.yahoo.com//091103/26/fh79.html
WELLINGTON, Nov 4 (Reuters) - The New Zealand dollar NZD=
recouped some losses on Wednesday after higher dairy prices at
the latest auction boosted appetite for the currency amid
broader caution on risky assets as stock markets weakened.
* Kiwi around $0.7194/99, compared with $0.7214/17 in late
local trade on Tuesday, after bouncing between an offshore low
of $0.7092 and a high of $0.7238.
* Kiwi boosted after Fonterra, NZ's top export earner,
reported another rise in dairy prices at its latest auction, up
13.7 percent, pointing to a strengthening in demand.
[ID:nWEL459929]
* U.S. dollar rises to a one-month high against a basket of
currencies as concerns about the global banking sector and
equity losses re-ignite safe-haven demand for the greenback.
* Investors trim risky positions as European and Wall
Street shares fell on poor results from UBS UBSN.VS and a
shake-up of UK banks Lloyds LLOY.L and Royal Bank of Scotland
RBS.L
* NZ dollar still below A$0.80 against the Aussie
NZDAUD=R after the Reserve Bank of Australia's decision to
raise rates by 25 basis points to 3.50 percent on Tuesday, as
expected.
* But fears of a rapid widening of the yield gap between NZ
and Australia eased after the RBA said it expected to gradually
lessen its stimulus of the economy, and was careful not to fuel
expectations for another hike in December. [ID:nSYD339317]
* Kiwi flat against the euro NZDEUR=R and the yen
NZDJPY=R, keeping the trade-weighted index =NZD steady.
* Markets cautious ahead of central bank meetings in
Britain, Eurozone and the United States, along with U.S.
non-farm payrolls at the end of the week.
* Kiwi seen supported near term at $0.7100 with resistance
at $0.7270.
* NZ bonds a touch softer, while the U.S. government
securities prices slid as traders prepared themselves for
Wednesday's Treasury refunding announcement and a statement
from the Federal Reserve on monetary policy.
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