http://nz.biz.yahoo.com//091105/26/fiug.html
WELLINGTON, Nov 6 (Reuters) - The New Zealand dollar NZD=
struggled on Friday in the aftermath of poor job data and
central bank comments as the U.S. currency rose ahead of
employment report.
* Kiwi resumes around $0.7210, compared with $0.7187/92 in
late local trade on Thursday, as appetite for risky assets such
as the kiwi was muted and investors readied for U.S. non-farm
payrolls later on Friday.
* Kiwi hits an offshore low of $0.7160 after data showed
NZ's jobless rate hit a nine-year high, backing the case for
rates to be held low well into next year.
* Weaker than expected NZ labour data, which showed
unemployment rising to a nine year high, pressured kiwi along
with Reserve Bank of NZ governor's comments that financial
markets were mistakenly treating the Australian and NZ
economies as similar, when the reality was that NZ's recovery
was slow and vulnerable. See [ID:nWEL164600].
* Markets see Bollard's comments as a "green light" to sell
kiwi against the Aussie NZDAUD=R, sending it to a three-month
low and pressuring the kiwi lower against other crosses.
* However, markets still pricing in a full rate hike in
March because of improving local economic data.
* European Central Bank and Bank of England both leave
rates unchanged, but express more optimism about the economic
outlook. [ID:nL5394422]
* Kiwi seen susceptible on the downside as it fails to
rally when equities are doing well. Strong resistance seen
around $0.7300, with support expected around $0.7170.
* NZ bonds steady, as steady U.S. rate outlook favours
short-end U.S Treasuries, but upcoming supply weighs on the
long end of the curve.
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