WELLINGTON, Oct 4 (Reuters) - The Australian and New Zealand
dollars held near recent highs on Monday as a broad fall in the
U.S. dollar continued on fears of more monetary easing to help
prop up the struggling U.S. economy.
* Australian dollar trading at $0.9734, after striking a two-year high of $0.9751 in offshore trade. The Aussie seen on track to test post-float high of $0.9850 after gaining 1 percent last week and over 8 percent for all of September.
* Partial holiday in Australia, but focus on the Reserve Bank of Australia's rate decision on Tuesday, with a Reuters poll of
23 economists showing 18 expected a hike with five for no change . This could end a four
month pause.
* Investors are more confident on the chances of a hike, with the Credit Suisse measure showing around a 62 percent chance of an increase, up from 50 pct late last week.
* The kiwi firm around $0.7440, after ranging between $0.738 and $0.7464, the best since mid-November 2009, offshore. Having broken out of its recent $0.73-$0.74 range, the kiwi seen likely to test $0.7465, the high on Nov. 19.
* In addition to broad U.S. dollar weakness, strong Chinese manufacturing data on Friday also helped boost risky trades. Comments from a Federal Reserve official about disappointing U.S. growth fuels bets for more quantitative easing.
* Wall Street gains, while commodities index fell 0.4 percent. Gold extended rally to fresh record level.
* The euro benefits most from the depreciating dollar, which also pushes it up against the Aussie and the kiwi.
* Aussie/kiwi pair drifts lower to NZ$1.3045 from a five-month high of NZ$1.3176 struck late last week. In contrast to strong Australian data, NZ economy has slowed, pushing the likelihood of the next rate rise to early next year.
* Main NZ data this week will be the quarterly survey of business confidence on Tuesday.
* NZ government bonds fall, tracking U.S. Treasuries, with yields down about one basis point across the curve.
* Australian bond futures were also weaker, with three-year bond futures down 0.04 points at 95.07 while ten-year futures likewise dipped 0.01 points to 94.90.
((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.
* Australian dollar trading at $0.9734, after striking a two-year high of $0.9751 in offshore trade. The Aussie seen on track to test post-float high of $0.9850 after gaining 1 percent last week and over 8 percent for all of September.
* Partial holiday in Australia, but focus on the Reserve Bank of Australia's rate decision on Tuesday, with a Reuters poll of
23 economists showing 18 expected a hike with five for no change . This could end a four
month pause.
* Investors are more confident on the chances of a hike, with the Credit Suisse measure showing around a 62 percent chance of an increase, up from 50 pct late last week.
* The kiwi firm around $0.7440, after ranging between $0.738 and $0.7464, the best since mid-November 2009, offshore. Having broken out of its recent $0.73-$0.74 range, the kiwi seen likely to test $0.7465, the high on Nov. 19.
* In addition to broad U.S. dollar weakness, strong Chinese manufacturing data on Friday also helped boost risky trades. Comments from a Federal Reserve official about disappointing U.S. growth fuels bets for more quantitative easing.
* Wall Street gains, while commodities index fell 0.4 percent. Gold extended rally to fresh record level.
* The euro benefits most from the depreciating dollar, which also pushes it up against the Aussie and the kiwi.
* Aussie/kiwi pair drifts lower to NZ$1.3045 from a five-month high of NZ$1.3176 struck late last week. In contrast to strong Australian data, NZ economy has slowed, pushing the likelihood of the next rate rise to early next year.
* Main NZ data this week will be the quarterly survey of business confidence on Tuesday.
* NZ government bonds fall, tracking U.S. Treasuries, with yields down about one basis point across the curve.
* Australian bond futures were also weaker, with three-year bond futures down 0.04 points at 95.07 while ten-year futures likewise dipped 0.01 points to 94.90.
((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.