WELLINGTON, Nov 3 (Reuters) - The Australian dollar, spurred
by the central bank's rate hike, retreated slightly from above
parity against the U.S. currency on Wednesday, but remained well
supported in the run-up to the U.S. Federal Reserve meeting.
The New Zealand dollar was also pulled higher.
* The Aussie steady around $0.9987, from $0.9991 in New York, having hit the post-float high of $1.0025 in offshore trade, breaking the previous 28-year peak of $1.0004 on Oct 15.
* It surged on Tuesday after the Reserve Bank of Australia (RBA) surprised with a rate hike and signalled more were likely. Support seen at $0.9860 and resistance at $1.0050.
* Aussie's gain dragged NZ dollar to reach a fresh
27
month high of $0.7742 overnight, before pulling back to $0.7701 from $0.7721 in NY and $0.7662 in Tuesday local trade.
* Kiwi seen fairly supported around $0.7627, and strong resistance at $0.7763. As the markets brace for more U.S. easing, the NZ/US three-year swap spreads widens to almost 350 basis points, highest since September 2008.
* US dollar down ahead of a two-day meeting of the Federal Open Market Committee, which looks set to announce a second round of monetary easing on Wednesday. For details, see
* Expectations have centred around an initial commitment from the Fed to buy at least $500 billion in Treasury debt over five months, which was less than the $1 trillion size some traders had estimated weeks ago. Much uncertainty surrounds the scope and pace of bond purchases, however.
* Risk indicators supportive for high yielders, with Wall Street, the commodities index and gold all gaining. S&P futures slightly firmer.
* The Aussie/kiwi pair retreats to NZ$1.2942, after hitting a high of NZ$1.3069 following the RBA's move. The spread between two-year Australian/NZ swap rates back to around 132 basis points, after spiking 14 basis points from a near seven-week low to 135 basis points on Tuesday.
* No major data due in NZ, while Australia expects building approvals number.
* NZ govt debt weaker, underperforming firmer U.S. Treasuries, with local yields higher across the curve.
* Australian bond futures slightly, with three-year futures 1 tick higher at 94.98 while 10-year gained 1.5 ticks to 94.735.
* Fonterra's dairy prices consolidating in the latest auction, with prices steady from the previous event. No market impact.
((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.
The New Zealand dollar was also pulled higher.
* The Aussie steady around $0.9987, from $0.9991 in New York, having hit the post-float high of $1.0025 in offshore trade, breaking the previous 28-year peak of $1.0004 on Oct 15.
* It surged on Tuesday after the Reserve Bank of Australia (RBA) surprised with a rate hike and signalled more were likely. Support seen at $0.9860 and resistance at $1.0050.
* Aussie's gain dragged NZ dollar to reach a fresh
27
month high of $0.7742 overnight, before pulling back to $0.7701 from $0.7721 in NY and $0.7662 in Tuesday local trade.
* Kiwi seen fairly supported around $0.7627, and strong resistance at $0.7763. As the markets brace for more U.S. easing, the NZ/US three-year swap spreads widens to almost 350 basis points, highest since September 2008.
* US dollar down ahead of a two-day meeting of the Federal Open Market Committee, which looks set to announce a second round of monetary easing on Wednesday. For details, see
* Expectations have centred around an initial commitment from the Fed to buy at least $500 billion in Treasury debt over five months, which was less than the $1 trillion size some traders had estimated weeks ago. Much uncertainty surrounds the scope and pace of bond purchases, however.
* Risk indicators supportive for high yielders, with Wall Street, the commodities index and gold all gaining. S&P futures slightly firmer.
* The Aussie/kiwi pair retreats to NZ$1.2942, after hitting a high of NZ$1.3069 following the RBA's move. The spread between two-year Australian/NZ swap rates back to around 132 basis points, after spiking 14 basis points from a near seven-week low to 135 basis points on Tuesday.
* No major data due in NZ, while Australia expects building approvals number.
* NZ govt debt weaker, underperforming firmer U.S. Treasuries, with local yields higher across the curve.
* Australian bond futures slightly, with three-year futures 1 tick higher at 94.98 while 10-year gained 1.5 ticks to 94.735.
* Fonterra's dairy prices consolidating in the latest auction, with prices steady from the previous event. No market impact.
((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.