http://nz.biz.yahoo.com//091106/26/fj0r.html
WELLINGTON, Nov 6 (Reuters) - The New Zealand dollar NZD=
held steady against the U.S. currency on Friday ahead of a key
U.S. employment report, but the currency remained under
pressure against the Australian dollar on central bank
comments.
* Kiwi stable around opening level at $0.7216/26, as
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.
* Kiwi also hit by Reserve Bank of New Zealand 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 comments as a "green light" to sell kiwi
against the Aussie NZDAUD=R, sending it to a three-month low
and pressuring the kiwi against other currencies.
* 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]
* Focus now on Reserve Bank of Australia's statement on
monetary policy at 0030 GMT as no major data due in NZ on
Friday.
* Kiwi seen susceptible on the downside as it fails to
rally when equities are performing well. Strong resistance seen
around $0.7300, with support expected around $0.7170.
* NZ bonds softer, as steady U.S. rate outlook favours
short-end U.S Treasuries, but upcoming supply weighs on the
long end of the curve. Local yields up to two basis points
higher.
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