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NZ dollar hovers near 15-month high; debt flat

Published: 22 Oct 2009 17:32:01 PST

WELLINGTON, Oct 23 - The New Zealand dollar stayed within sight of 15-month highs on Friday as it awaited direction amid firmer stocks and soft data going into a long weekend.

* Kiwi <NZD=D4> resumes local session around $0.7580/90 after range trading through the offshore session, showing no inclination to revisit the 15-month high of $0.7635 the day before.

* U.S. dollar manages to recover some lost ground as risk appetite eases on investors betting the greenback's recent slide has been overdone. See [USD/]

* Solid U.S. corporate earnings were offset by weaker than expected jobless claims data, rekindling doubts about the strength of the U.S. economic recovery.

* NZ dollar subject of profit taking after its recent strong gains. Market chatter of a hedge fund liquidating a long NZ dollar position as well. Currency may be pressured by investors squaring positions going into the long weekend.

* Market attention on the Reserve Bank of New Zealand's (RBNZ) rate review next week. No change is seen to 2.5 percent cash rate but economists expect a move to a neutral stance by dropping reference to another possible rate cut. Market pricing <NZDOIS> in 25 basis point rises in both January and March next year.

* NZ dollar seen supported at $0.7500 with $0.7600 likely to be first line of resistance. Currency has gained around 2.8 percent so far this week.

* NZ bonds open flat as U.S. Treasuries were weighed down by worries about the large amounts of pending U.S. government debt issuance and mixed data. -------------(23 October 2009 09:04 / 2004 GMT)-------------

(Last prices as at 6pm NZ time the previous day) 90-DAY LIVE 2.77 (2.77) NOV-2011 4.463 (4.465) 90-DAY (DEC) 97.07 (97.08) APR-2013 5.239 (5.240) 90-DAY (MAR) 96.54 (96.53) DEC-2017 5.790 (5.790) 90-DAY (JUN) 95.64 (95.64) MAY-2021 6.060 (6.060) RBNZ MCI 429 (400) US 10YR BOND 3.415 (3.395) NZD TWI 67.69 (67.30) AU 10YR BOND 5.715 (5.720) NZD/USD 0.7584(0.7536) NZ/US 10YR SPD +238bp(+240bp) NZD/AUD 0.8177(0.8143) NZ/AU 10YR SPD +8bp (+7bp) NZD/EUR 0.5045(0.5023) NZ 2YR SWAP 4.690 (4.690) NZD/JPY 69.21 (68.68) NZ 5YR SWAP 5.650 (5.650) --------------------------------------------------------------- - (