NZ dollar softer amid gloomy econ news; debt flat

WELLINGTON, April 17 - The New Zealand dollar <NZD=> was near a two week-low on Friday as a stream of weak data around the world dimmed hopes of recovery soon and sent investors looking for safe havens.

* Kiwi resumes around $0.5710/20 after falling to a low of $0.5680 in the offshore session. Current slide started on Thursday after China's poor GDP data.

* U.S. dollar and yen climb across the board after a string of reports suggest there will be no imminent turnaround in global economy, prompting investors to become more risk averse and seek safety.

* China's economic growth was 6.1 percent in the first quarter from 6.8 percent in the December quarter, the weakest growth since records began. Negative sentiment compounded by data showing euro zone output plummeted in February, as the number of U.S. jobless claims hit record in April and housing starts fall. See [ID:nN161166]

* Organisation for Economic Co-operation and Development says NZ interest rates need to be cut further and left low for some time to counter recession. OECD also warns about NZ government's deficits and debt levels. See [ID:nWEL392591]

* NZ dollar softer against the yen <NZDJPY=R> and euro <NZDEUR=R>, but recoups some lost ground against the Aussie <NZDAUD=R>.

* Near-term support for kiwi seen at $0.5660 with resistance at $0.5740, but with more risks to the downside.

* NZ first quarter inflation data due at 10.45 a.m. (2245 GMT). Consumer prices expected to have risen 0.3 percent on previous quarter but annual rate declining to 3 percent, the top of the Reserve Bank of New Zealand's target band. However, inflation seen as a secondary issue in the current environment.

* NZ two-year swaps <NZDSM3NB2Y=> flat at 3.62 percent and five-year swaps <NZDSM3NB5Y=> a couple of ticks lower at 4.77 percent.

* NZ bonds open flat after previous day's solid gains. U.S. Treasuries fall after data. -------------April 17 snapshot at 9.00 a.m. (2100 GMT)----------

(figures in brackets from Apr 16) 90-DAY BILLS (JUN) 97.08 (PREV 97.06) 90-DAYS 3.11 (PREV 3.11) 90-DAY BILLS (SEP) 97.14 (PREV 97.14) 07/09 2.96 (PREV 2.96) 90-DAY BILLS (DEC) 97.03 (PREV 96.99) 11/11 3.66 (PREV 3.66) NZD TRADE WEIGHTED 56.93 (PREV 57.12) 04/13 4.34 (PREV 4.34) NZD/USD 0.5723/32 (PREV 0.5760/66) 12/17 5.24 (PREV 5.24) NZD/AUD 0.7940/56 (PREV 0.7921/36) RBNZ MCI -403 (PREV -380) NZD/EUR 0.4340/48 (PREV 0.4358/64) US 10-YR 2.84 (PREV 2.78) NZD/JPY 56.81/91 (PREV 57.12/19) AU 10-YR 4.75 (PREV 4.68) *** SPREADS: NZ/US 10-YR +240 (+249) NZ/AUS 10-YR +49 *** ----------------------------------------------------------------