WELLINGTON, Sept 29 (Reuters) - The New Zealand dollar was steady on Monday, tracking movements in the broader market as the U.S. dollar gained on a deal reached by lawmakers on a financial bailout and the euro fell on banking woes in Europe.
The kiwi stayed within recent ranges, with a slightly softer tone against the U.S. currency offset by gains against the euro and the British pound.
'Currencies continue to trade almost as an afterthought, with the focus on the US government's bailout plan and the implications for equities and money market interest rates,' said Westpac market economist Michael Gordon in a forex commentary.
At 0400 GMT the kiwi was at $0.6855/65 compared with $0.6870/80 in late local trade on Friday. It traded a $0.6831 to $0.6887 range through the day.
The U.S. dollar got a boost from investor relief that an agreement over the U.S. government's proposed $700 billion bailout plan looked to have been reached by U.S. lawmakers.
In Europe, Belgian-Dutch financial group Fortis was rescued in a state buyout, while sterling was hit as Britain prepared to nationalise distressed mortgage lender Bradford and Bingley.
The kiwi was unmoved by better-than-expected trade data, which showed a deficit of NZ$750 million ($514 million) for August, with the annual shortfall narrowing to NZ$4.28 billion from NZ$4.48 billion.
'The RBNZ will be much more focused on how the latest incarnation of the credit crunch will influence the longevity of the recession,' said TD Securities senior strategist Joshua Williamson.
Data last Friday confirmed New Zealand is in its first recession in more than a decade and many forecasters, including the central bank and the Treasury, are picking a third quarter of negative growth in the three months to September.
The Reserve Bank of NZ released data showing consumer borrowing, including house loans, lifted slightly in August, rising 0.4 percent on the month before, although the annual growth rate declined further.
'Lending growth to households will remain muted for some time as the housing market continues to adjust and households consolidate their balance sheet,' said ANZ-National Bank senior economist Khon Goh.
NZ bonds were unmoved, with the yield on the benchmark 10-year bond at 6.72 percent.
(Reporting by Gyles Beckford; Editing by James Thornhill) . nt COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
The kiwi stayed within recent ranges, with a slightly softer tone against the U.S. currency offset by gains against the euro and the British pound.
'Currencies continue to trade almost as an afterthought, with the focus on the US government's bailout plan and the implications for equities and money market interest rates,' said Westpac market economist Michael Gordon in a forex commentary.
At 0400 GMT the kiwi was at $0.6855/65 compared with $0.6870/80 in late local trade on Friday. It traded a $0.6831 to $0.6887 range through the day.
The U.S. dollar got a boost from investor relief that an agreement over the U.S. government's proposed $700 billion bailout plan looked to have been reached by U.S. lawmakers.
In Europe, Belgian-Dutch financial group Fortis was rescued in a state buyout, while sterling was hit as Britain prepared to nationalise distressed mortgage lender Bradford and Bingley.
The kiwi was unmoved by better-than-expected trade data, which showed a deficit of NZ$750 million ($514 million) for August, with the annual shortfall narrowing to NZ$4.28 billion from NZ$4.48 billion.
'The RBNZ will be much more focused on how the latest incarnation of the credit crunch will influence the longevity of the recession,' said TD Securities senior strategist Joshua Williamson.
Data last Friday confirmed New Zealand is in its first recession in more than a decade and many forecasters, including the central bank and the Treasury, are picking a third quarter of negative growth in the three months to September.
The Reserve Bank of NZ released data showing consumer borrowing, including house loans, lifted slightly in August, rising 0.4 percent on the month before, although the annual growth rate declined further.
'Lending growth to households will remain muted for some time as the housing market continues to adjust and households consolidate their balance sheet,' said ANZ-National Bank senior economist Khon Goh.
NZ bonds were unmoved, with the yield on the benchmark 10-year bond at 6.72 percent.
(Reporting by Gyles Beckford; Editing by James Thornhill) . nt COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
