AB: NZ dollar rises to three-week high as risk returns
WELLINGTON, Nov 17 - The New Zealand dollar rose to a three-week high on Tuesday as the U.S. dollar fell and stock markets strengthened, boosting demand for risky assets.
* Kiwi around $0.7500, compared with $0.7424/29 in late trade on Monday. It hit a high of $0.7526 in early local trade, the best since October 26.
* U.S. dollar falls broadly as a rise in U.S. retail sales fail to change the outlook for U.S. rates and disagreement among Asian and U.S. leaders on exchange rates weaken the greenback.
* U.S. dollar managed a brief rally off lows after Federal Reserve Chairman Ben Bernanke said the U.S. central bank is attentive to changes in the currency. But as investors digested his comments, they decided there were no signals of change to monetary policy. For details, see [ID:nN16514940]
* The dollar index <.DXY>, which measures the dollar's performance against a basket of six other major currencies, fell to a fresh 15-month low of 74.679.
* Kiwi also at three-week high against the euro and firm against the Aussie and the yen , keeping the trade-weighted index <=NZD> up 0.7 percent.
* A quiet week for local data, with focus on Reserve Bank of Australia's release of its minutes for the Nov. 3 policy meeting, when it raised rates by 25 basis points to 3.50 percent.
* Kiwi seen taking its cue from global drivers. Broad support for the kiwi seen from $0.7410 with resistance at $0.7525.
* NZ bonds firmer, after U.S. government securities prices added to gains on Bernanke remarks. Local yields up to four basis points lower. -------------(17 November 2009 08:45 / 1945 GMT)-------------
(Last prices as at 6pm NZ time the previous day) 90-DAY LIVE 2.79 (2.78) NOV-2011 4.280 (4.280) 90-DAY (DEC) untraded (97.19) APR-2013 5.000 (5.035) 90-DAY (MAR) 96.93 (96.94) DEC-2017 5.720 (5.750) 90-DAY (JUN) 96.21 (96.2) MAY-2021 6.015 (6.050) RBNZ MCI 340 (312) US 10YR BOND 3.347 (3.423) NZD TWI 66.48 (66.11) AU 10YR BOND 5.582 (5.620) NZD/USD 0.7503(0.7434) NZ/US 10YR SPD +237bp(+233bp) NZD/AUD 0.7987(0.7952) NZ/AU 10YR SPD +14bp (+13bp) NZD/EUR 0.5000(0.4968) NZ 2YR SWAP 4.470 (4.470) NZD/JPY 66.68 (66.59) NZ 5YR SWAP 5.590 (5.590) --------------------------------------------------------------- - (
