SYDNEY, Oct 25 (Reuters) - The Australian and New Zealand
dollars edged higher on Monday after a partial G20 agreement on
currencies calmed fears of competitive depreciations and gave a
green light to leveraged plays in leveraged trades.
* Aussie inches up to $0.9868, from $0.9807 late in New York on Friday, and briefly touched $0.9879. Resistance at $0.9892 with support around $0.9750.
* NZ dollar up at $0.7495, from $0.7463 in NY, with resistance at $0.7508 and support at $0.7426.
* G20 pledged to move toward more market-determined exchange rates while emerging countries were given a bigger weight in the IMF. For full coverage see.
* Analysts looking for more fund flows into emerging market currencies, commodities and stocks, which in turn implies further weakness in the U.S. dollar.
* Aussie also has relatively high yields in its favour, with two-year Australian yields paying a hefty 456 basis points over U.S., near the widest gap since mid-2008.
* Reserve Bank of Australia (RBA) is thought likely to hike again in the next few months given booming export earnings and a strong mining investment.
* RBA Governor Glenn Sevens gives a speech at 0025 GMT and market hoping for some guidance on the likely timing of any rise in the 4.5 percent cash rate.
* Also key will be third-quarter consumer price data on Wednesday where a high result would add to the case for a hike as early as November.
* Median forecasts are for underlying inflation to show a moderate rise of 0.7 percent, which would keep the annual pace around 2.6 percent and still within the RBA's long-run target of 2 to 3 percent.
* Yet the central bank is focused on the risks to inflation over the next year or so which seemed tilted to the upside given its expectation of accelerating economic growth.
* The Reserve Bank of New Zealand holds it policy meeting on Thursday and is widely expected to hold rates at 3 percent given a disappointing recovery. For a poll see
* Aussie quoted higher on the Kiwi at NZ$1.3154, and a shade firmer on the yen at 80.17.
* NZ dollar edges up to 60.92 yen and the
10
year contract up 0.005 points at 94.830.
((Australia/New Zealand bureaux; +61 2 9373 1800/+64 4 471 4234))
((wayne.cole@reuters.com ; +61 2 9373 1813; Reuters Messaging: wayne.cole.reuters.com@reuters.net)) 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.
* Aussie inches up to $0.9868, from $0.9807 late in New York on Friday, and briefly touched $0.9879. Resistance at $0.9892 with support around $0.9750.
* NZ dollar up at $0.7495, from $0.7463 in NY, with resistance at $0.7508 and support at $0.7426.
* G20 pledged to move toward more market-determined exchange rates while emerging countries were given a bigger weight in the IMF. For full coverage see.
* Analysts looking for more fund flows into emerging market currencies, commodities and stocks, which in turn implies further weakness in the U.S. dollar.
* Aussie also has relatively high yields in its favour, with two-year Australian yields paying a hefty 456 basis points over U.S., near the widest gap since mid-2008.
* Reserve Bank of Australia (RBA) is thought likely to hike again in the next few months given booming export earnings and a strong mining investment.
* RBA Governor Glenn Sevens gives a speech at 0025 GMT and market hoping for some guidance on the likely timing of any rise in the 4.5 percent cash rate.
* Also key will be third-quarter consumer price data on Wednesday where a high result would add to the case for a hike as early as November.
* Median forecasts are for underlying inflation to show a moderate rise of 0.7 percent, which would keep the annual pace around 2.6 percent and still within the RBA's long-run target of 2 to 3 percent.
* Yet the central bank is focused on the risks to inflation over the next year or so which seemed tilted to the upside given its expectation of accelerating economic growth.
* The Reserve Bank of New Zealand holds it policy meeting on Thursday and is widely expected to hold rates at 3 percent given a disappointing recovery. For a poll see
* Aussie quoted higher on the Kiwi at NZ$1.3154, and a shade firmer on the yen at 80.17.
* NZ dollar edges up to 60.92 yen and the
10
year contract up 0.005 points at 94.830.
((Australia/New Zealand bureaux; +61 2 9373 1800/+64 4 471 4234))
((wayne.cole@reuters.com ; +61 2 9373 1813; Reuters Messaging: wayne.cole.reuters.com@reuters.net)) 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.