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NZ dollar steady ahead of rate call; debt soft

Published: 27 Oct 2009 15:53:18 PST

WELLINGTON, Oct 28 - The New Zealand dollar was steady near one-week lows on Wednesday ahead of a central bank policy review expected to pave the way to eventual rate rises.

* Kiwi <NZD=D4> hovers around $0.7436/46 on profit taking in high-yielding currencies, reduced risk appetite and wariness about the forthcoming central bank rate decision.

* Market attention on the RBNZ rate review on Thursday. Latest Reuters poll shows no change is seen to 2.5 percent cash rate, with economists expecting the central bank to start hiking as early as March next year [NZ/POLL]

* RBNZ is also expected to drop reference to another possible rate cut, and may even dilute its pledge to keep rates at current level until latter part of 2010. See [ID:nWEL505681]

* Kiwi weak against the Aussie <NZDAUD=R>, the euro <NZDEUR=R> and the yen <NZDJPY=R>, keeping the trade-weighted index <=NZD> 0.5 percent lower.

* NZ monthly business confidence survey due at 0200 GMT and Australian third quarter inflation at 0030 GMT, with expectations of a 0.8 percent rise <ECONAU> in consumer prices on the previous quarter.

* NZ dollar seen supported at $0.7400/10 with initial resistance around $0.7490/00.

* NZ bonds weak across the curve as U.S. Treasuries gain on bargain hunting on strong demand in bond auction and safe haven appeal after weak U.S. consumer confidence data. -------------(28 October 2009 12:19 / 2319 GMT)-------------

(Last prices as at 6pm NZ time the previous day) 90-DAY LIVE 2.80 (2.80) NOV-2011 4.515 (4.520) 90-DAY (DEC) 97.10 (97.1) APR-2013 5.265 (5.280) 90-DAY (MAR) 96.62 (96.57) DEC-2017 5.815 (5.830) 90-DAY (JUN) 95.72 (95.66) MAY-2021 6.085 (6.100) RBNZ MCI 376 (397) US 10YR BOND 3.452 (3.545) NZD TWI 66.94 (67.22) AU 10YR BOND 5.750 (5.758) NZD/USD 0.7438(0.7479) NZ/US 10YR SPD +236bp(+229bp) NZD/AUD 0.8118(0.8139) NZ/AU 10YR SPD +7bp (+7bp) NZD/EUR 0.5023(0.5024) NZ 2YR SWAP 4.690 (4.690) NZD/JPY 68.28 (68.88) NZ 5YR SWAP 5.650 (5.650) --------------------------------------------------------------- - (