AB: NZ dollar at one-week low as risk aversion returns
WELLINGTON, Dec 9 - The New Zealand dollar was at a one-week low on Wednesday ahead of a central bank rate review and reduced appetite for risk amid renewed concerns about the global economy.
* Kiwi resumes locally around $0.7080/90 level, having ranged $0.7070 to $0.7170 in the offshore session, as the U.S. dollar gained against the euro, and the yen benefited from talk that it will become the funding currency of choice.
* U.S. dollar gained against the euro for a third straight session after rating agency Fitch cut Greece's rating to BBB+ from A-. Concerns about the global outlook also exacerbated by Moody's Investor Services comments that financial crises in several top rated countries could last for several years. See [USD/]
* NZ dollar weaker against the yen but generally steady against other majors.
* Bank of Canada holds its key rate steady at 0.25 percent as expected but repeated its expectation to keep rates steady at least until the second half of 2010. [ID:nBAC002349]
* Attention on Reserve Bank of New Zealand's monetary statement on Thursday, with all 19 forecasters in latest Reuters poll picking rates to be left unchanged at record low 2.5 percent. Majority sees rates being raised in the second quarter, with cash rate seen at 3 percent by end of June and 3.75 percent end of September. [NZ/POLL]
* NZ October electronic card retail sales at 10.45 a.m. Other NZ data due this week includes third quarter terms of trade, food prices and accommodation.
* Near term support for the kiwi seen around $0.7130 and resistance around $0.7200.
* NZ debt firms, with yields up to 6 basis points lower, as U.S. Treasuries benefit from safe haven demand and reduced U.S. rate hike expectations. -------------(09 December 2009 09:03 / 2003 GMT)--------------
(Last prices as at 6pm NZ time the previous day) 90-DAY LIVE 2.77 (2.77) NOV-2011 4.050 (4.110) 90-DAY (DEC) untraded (97.23) APR-2013 4.775 (4.845) 90-DAY (MAR) 97.02 (97.00) DEC-2017 5.650 (5.710) 90-DAY (JUN) 96.39 (96.36) MAY-2021 5.940 (6.000) RBNZ MCI 111 (144) US 10YR BOND 3.394 (3.423) NZD TWI 63.52 (63.94) AU 10YR BOND 5.545 (5.540) NZD/USD 0.7059(0.7142) NZ/US 10YR SPD +226bp(+229bp) NZD/AUD 0.7815(0.7818) NZ/AU 10YR SPD +11bp (+17bp) NZD/EUR 0.4804(0.4810) NZ 2YR SWAP 4.355 (4.390) NZD/JPY 62.35 (63.45) NZ 5YR SWAP 5.450 (5.470) --------------------------------------------------------------- - (
