Reuters Finance News, New Zealand |
|
NZ dollar rises after Fed decision, bonds softer
Thursday November 5, 2009, 7:20 am
* Kiwi around $0.7289/94, compared with $0.7191/97 in late local trade on Wednesday. Trading was choppy initially after the Fed's rate decision as U.S. equities pared gains. * Kiwi support returns as Wall Street resumed its climb back toward session highs. It hit an offshore high of $0.7312. * U.S. dollar falls in choppy trading against the euro after the rate move. Low rates should ensure that the U.S. dollar will remain a funding currency in deals in which investors borrow in dollars to buy higher-yielding assets. * NZ dollar has enjoyed steady support after Fonterra, NZ's top export earner, posted a 13.7 percent rise in dairy prices at its latest auction on Wednesday, fuelling speculation of a higher payout to NZ farmers. [ID:nWEL459929] * The European Central Bank and the Bank of England also hold policy meetings later in the week. [ECB/INT] [BOE/INT] * Kiwi firmer against the euro NZDEUR=R and the yen NZDJPY=R, while remains soft against the Aussie NZDAUD=R, keeping the trade-weighted index =NZD 0.7 percent higher. * Focus on third-quarter jobs data on Thursday with expectations unemployment will rise to 6.4 percent from 6 percent. [NZ/POLL] The Reserve Bank of NZ governor also speaking at the Trans Tasman business Circle. * Kiwi seen trading in wide ranges, with support near term seen at $0.7150 and resistance at $0.7360. * Swaps higher, while NZ bonds a tad softer, after long-dated U.S. Treasury debt prices fell on the Fed move. |
![]() |
|
|
![]() |
| Next article: | Australia shares 0.2 percent lower, Transurban in play |
| Previous article: | Australia shares turn negative; retailers dip |