WELLINGTON, July 29 (Reuters) - The New Zealand dollar slid
half a cent Thursday after the Reserve Bank of New Zealand (RBNZ)
hiked rates as expected but signalled the pace and scale of
further moves would be less than thought just a month ago.
* Kiwi slides to $0.7210, from $0.7280 before the announcement, after trading a $0.7268-$0.7321 range offshore.
* The Aussie followed the Kiwi lower, dipping to $0.8905, after trading an $0.8922-$0.8974 range in offshore trade. Support at $0.8895 and $0.8860.
* RBNZ lifted it cash rate by 25 basis points to 3 percent, as was widely expected in the market. Its statement sounded more dovish with mention of a softer outlook for growth.
* It sounded cautious on both trading partner growth and the domestic economy and concluded that the pace and extent of further rate increases was likely to be more moderate than was projected in June.
* It also took a swipe at the recent strength in the Kiwi dollar, saying it was inconsistent with the economic outlook. .
* Bank bill futures rallied all the way out to September next year as investors pared back the trajectory of future tightening.
* NZ bonds rallied with two-year yields dropping 5.5 basis points to 3.75 percent, while swap rates were down across the curve.
* Australian bond futures held onto Wednesday's sharp gains with the three-year contract indicated up 0.030 points at
95.320, while 10
year futures rose 0.02 points to 94.805.
* The Aussie took a spill on Wednesday after Australian inflation data proved far more tame than expected, all but removing any chance of the Reserve Bank of Australia (RBA) would raise rates at its policy meeting next week.
* Risk appetite was also dampened by a drop in U.S. durable goods data, though core orders were firmer than the headline suggested, and a sluggish outlook from the Federal Reserve's Beige Book. See and
* Thursday also sees NZ June trade data, with a Reuters poll picking an annual surplus of NZ$721 million.
* The Aussie recovered smartly on the Kiwi after the RBNZ statement to reach NZ$1.2343, from a nine-day low of NZ$1.2195.
* The kiwi was lower against the euro and the yen .
((Australia/New Zealand bureaux; +61 2 9373 1800/+64 4 471 4234)) Keywords: MARKETS AUSTRALIA NEWZEALAND FOREX/BONDS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Kiwi slides to $0.7210, from $0.7280 before the announcement, after trading a $0.7268-$0.7321 range offshore.
* The Aussie followed the Kiwi lower, dipping to $0.8905, after trading an $0.8922-$0.8974 range in offshore trade. Support at $0.8895 and $0.8860.
* RBNZ lifted it cash rate by 25 basis points to 3 percent, as was widely expected in the market. Its statement sounded more dovish with mention of a softer outlook for growth.
* It sounded cautious on both trading partner growth and the domestic economy and concluded that the pace and extent of further rate increases was likely to be more moderate than was projected in June.
* It also took a swipe at the recent strength in the Kiwi dollar, saying it was inconsistent with the economic outlook. .
* Bank bill futures rallied all the way out to September next year as investors pared back the trajectory of future tightening.
* NZ bonds rallied with two-year yields dropping 5.5 basis points to 3.75 percent, while swap rates were down across the curve.
* Australian bond futures held onto Wednesday's sharp gains with the three-year contract indicated up 0.030 points at
95.320, while 10
year futures rose 0.02 points to 94.805.
* The Aussie took a spill on Wednesday after Australian inflation data proved far more tame than expected, all but removing any chance of the Reserve Bank of Australia (RBA) would raise rates at its policy meeting next week.
* Risk appetite was also dampened by a drop in U.S. durable goods data, though core orders were firmer than the headline suggested, and a sluggish outlook from the Federal Reserve's Beige Book. See and
* Thursday also sees NZ June trade data, with a Reuters poll picking an annual surplus of NZ$721 million.
* The Aussie recovered smartly on the Kiwi after the RBNZ statement to reach NZ$1.2343, from a nine-day low of NZ$1.2195.
* The kiwi was lower against the euro and the yen .
((Australia/New Zealand bureaux; +61 2 9373 1800/+64 4 471 4234)) Keywords: MARKETS AUSTRALIA NEWZEALAND FOREX/BONDS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.