WELLINGTON, Nov 1 (Reuters) - The New Zealand dollar held at
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month highs against the greenback on Monday, with a round of short covering boosting the kiwi late last week in the run-up to the Federal Reserve policy meeting.
The Australian dollar was also firmer against the U.S. currency, but lagged the kiwi.
* The kiwi reached a peak of $0.7670, the best since July 2008, helped by illiquidity in the offshore market. It was last at $0.7667 versus $0.7628 late in New York on Friday.
* After breaking above key resistance at $0.7644, the kiwi is now testing strong resistance around $0.7663, then $0.7705, while support is seen at $0.7557.
* The Aussie also higher around $0.9846 versus $0.9813 in New York, having traded as high as $0.9854 overnight -- not far off the post-float high of $1.0004 struck on Oct 15. Support seen at $0.9651, the low on Oct. 27.
* In broader markets, U.S. Treasuries rose, and the U.S. dollar eased after data showed the U.S. economy grew in Q3 but not briskly enough to alter bets of Federal Reserve monetary easing on Wednesday. U.S. mid-term election also due this week.
* Wall Street flat, while commodities index up a touch and gold gains 1 percent. The S&P futures slightly higher, showing some support for risk trades.
* Kiwi's steady gains helped by Thursday's central bank decision to keep rates on hold at 3 percent as expected, but maintain a tightening bias despite ongoing weakness in the economy. This helped firmed up expectations for a rate hike in March 2011. See
* In Australia, prospects for a rate hike dimmer after a tame consumer inflation report last week removed the urgency for a rise at the Reserve Bank of Australia's policy meeting on Nov. 2. A Reuters poll of 20 analysts showed 14 thought there would be no hike.
* That helped the Aussie/kiwi pair fall to seven week lows of NZ$1.2785 offshore. The pair last at NZ$1.2821.
* Australia expects TD-MI inflation gauge for October and house prices for Q3 later on Monday, ahead of the RBA rate decision on Tuesday.
* In NZ, wage data due Tuesday and unemployment number expected Thursday, with a Reuters poll forecasting jobless rate improving slightly to 6.7 pct in Q3 from 6.8 pct in Q2.
* NZ govt debt slipped, underperforming U.S. Treasuries.
((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.
27
month highs against the greenback on Monday, with a round of short covering boosting the kiwi late last week in the run-up to the Federal Reserve policy meeting.
The Australian dollar was also firmer against the U.S. currency, but lagged the kiwi.
* The kiwi reached a peak of $0.7670, the best since July 2008, helped by illiquidity in the offshore market. It was last at $0.7667 versus $0.7628 late in New York on Friday.
* After breaking above key resistance at $0.7644, the kiwi is now testing strong resistance around $0.7663, then $0.7705, while support is seen at $0.7557.
* The Aussie also higher around $0.9846 versus $0.9813 in New York, having traded as high as $0.9854 overnight -- not far off the post-float high of $1.0004 struck on Oct 15. Support seen at $0.9651, the low on Oct. 27.
* In broader markets, U.S. Treasuries rose, and the U.S. dollar eased after data showed the U.S. economy grew in Q3 but not briskly enough to alter bets of Federal Reserve monetary easing on Wednesday. U.S. mid-term election also due this week.
* Wall Street flat, while commodities index up a touch and gold gains 1 percent. The S&P futures slightly higher, showing some support for risk trades.
* Kiwi's steady gains helped by Thursday's central bank decision to keep rates on hold at 3 percent as expected, but maintain a tightening bias despite ongoing weakness in the economy. This helped firmed up expectations for a rate hike in March 2011. See
* In Australia, prospects for a rate hike dimmer after a tame consumer inflation report last week removed the urgency for a rise at the Reserve Bank of Australia's policy meeting on Nov. 2. A Reuters poll of 20 analysts showed 14 thought there would be no hike.
* That helped the Aussie/kiwi pair fall to seven week lows of NZ$1.2785 offshore. The pair last at NZ$1.2821.
* Australia expects TD-MI inflation gauge for October and house prices for Q3 later on Monday, ahead of the RBA rate decision on Tuesday.
* In NZ, wage data due Tuesday and unemployment number expected Thursday, with a Reuters poll forecasting jobless rate improving slightly to 6.7 pct in Q3 from 6.8 pct in Q2.
* NZ govt debt slipped, underperforming U.S. Treasuries.
((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.