NZ dollar firm on economic optimism; debt steady

WELLINGTON, Oct 1 - The New Zealand dollar <NZD=> was firm against the U.S. dollar on Thursday, helped by growing confidence about economic recovery.

* Kiwi steady around opening level at $0.7230/35, compared with $0.7210/15 in late Wednesday trade, as the U.S. currency slipped on weak economic data, including a surprising contraction in Midwest business activity.

* NZ dollar benefits from the latest survey showing business confidence at a 10-year high and other indicators signalling the New Zealand economy on the mend. See also [ID:nSP488577]

* Kiwi also boosted by strong Australian retail sales data, which has lifted the Aussie to a 13-month high against the U.S. dollar. NZ dollar softer against the Aussie <NZDAUD=R>.

* NZ dollar near 16-month highs against the euro <NZDEUR=>, and also firm against the yen <NZDJPY=R>. Trade-weighted index <=NZD> up 0.1 percent.

* No major local data expected for the rest of the week, with the kiwi likely tracking offshore events such as the Chinese PMI and the ISM index and weekly jobless claims in the United States.

* NZ dollar seen supported around $0.7140, and facing resistance at $0.7250 in the near term.

* NZ debt little changed, while short-dated U.S. Treasuries rose on weak data on jobs and regional business activity. -------------(01 October 2009 13:09 / 9 GMT)-------------

(Last prices as at 6pm NZ time the previous day) 90-DAY LIVE 2.80 (2.81) NOV-2011 4.170 (4.170) 90-DAY (DEC) 97.12 (97.13) APR-2013 4.965 (4.960) 90-DAY (MAR) 96.76 (96.78) DEC-2017 5.610 (5.610) 90-DAY (JUN) 96.13 (96.14) MAY-2021 5.940 (5.940) RBNZ MCI 279 (267) US 10YR BOND 3.320 (3.307) NZD TWI 65.65 (65.48) AU 10YR BOND 5.432 (5.418) NZD/USD 0.7231(0.7202) NZ/US 10YR SPD +229bp(+230bp) NZD/AUD 0.8178(0.8195) NZ/AU 10YR SPD +18bp (+19bp) NZD/EUR 0.4934(0.4924) NZ 2YR SWAP 4.300 (4.290) NZD/JPY 64.96 (64.57) NZ 5YR SWAP 5.475 (5.470) --------------------------------------------------------------- -