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NZ dollar steady in range trade; weak vs Aussie

Published: 28 Sep 2009 17:18:46 PST

WELLINGTON, Sept 29 - The New Zealand dollar <NZD=> held steady against the U.S. dollar on Tuesday with a bounce in equities supporting risky trades, while it fell against the Australian dollar on rate rise expectations.

* Kiwi around $0.7177/85 after hovering in a narrow range between $0.7160 and $0.7185 as a stronger Wall Street backs support for high yielders.

* Sentiment on kiwi still cautious after it rose to near 14-month highs of $0.7315 last week following a string of good news, with the economy showing first tiny growth after a long recession and the current account deficit narrowing sharply. Kiwi is now up more than 40 percent since early March.

* NZ dollar seen supported around $0.7110, and facing resistance at $0.7200 in the near term.

* Kiwi weak against the Aussie <NZDAUD=R> following comments from the Reserve Bank of Australia that interest rates would need to be raised in a timely fashion. Westpac chartists say Aussie showing near-term bullish outlook against the kiwi.

* Kiwi off two-week lows against the yen <NZDJPY=R>, after pressured on expectations that Japan unlikely to intervene to weaken its currency, which has risen to an eight-month high against the U.S. dollar.

* Data shows the number of new dwelling consents approved in NZ up for a second month in August. No impact on market. [ID:nWEL003866]

* NZ data flows thin this week with National Bank of NZ business survey on Wednesday. But investors will keep an eye for a raft of offshore economic data, including the U.S. September consumer confidence report.

* NZ debt lower, with yields up to 6 basis points higher. -------------(29 September 2009 13:00 / 0000 GMT)-------------

(Last prices as at 6pm NZ time the previous day) 90-DAY LIVE 2.81 (2.80) NOV-2011 4.090 (4.050) 90-DAY (DEC) 97.12 (97.12) APR-2013 4.920 (4.860) 90-DAY (MAR) 96.77 (96.8) DEC-2017 5.600 (5.585) 90-DAY (JUN) 96.17 (96.21) MAY-2021 5.940 (5.940) RBNZ MCI 260 (243) US 10YR BOND 3.278 (3.278) NZD TWI 65.39 (65.24) AU 10YR BOND 5.290 (5.240) NZD/USD 0.7173(0.7133) NZ/US 10YR SPD +232bp(+231bp) NZD/AUD 0.8222(0.8271) NZ/AU 10YR SPD +31bp (+35bp) NZD/EUR 0.4904(0.4888) NZ 2YR SWAP 4.260 (4.190) NZD/JPY 64.54 (63.78) NZ 5YR SWAP 5.430 (5.408) --------------------------------------------------------------- - ( --------------------------------------------------------------- - ((Wellington newsroom tel 64 4 471 4234, fax +64 4 4736 212, wellington.newsroom@reuters.com