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NZ dollar steady ahead of RBNZ report

NZ NewswireNZ Newswire 10/05/2016 Tina Morrison

The New Zealand dollar was little changed as traders await the release of the Reserve Bank's Financial Stability Report, which may detail further measures to curb the nation's bubbling housing market.

The kiwi traded at 67.56 US cents at 8am in Wellington, from 67.42 cents at 5pm on Tuesday. The trade-weighted index rose to 72.16 from 72.05.

The RBNZ's six-monthly gauge of financial stability is due for release at 9am, and is followed by a press conference and discussion at a parliamentary select committee.

The kiwi has weakened ahead of the report, on speculation additional curbs on the housing market may free up Governor Graeme Wheeler to reduce the official cash rate further, and may bounce should that fail to eventuate, analysts say.

"The RBNZ FSR is the main event to watch today," ANZ said.

"Market thinking is that if the RBNZ act against housing, it will remove an impediment to OCR cuts, which in turn would erode support for the New Zealand dollar."

The Real Estate Institute's monthly report on house prices is also scheduled for release.

The New Zealand dollar slipped to 91.72 Australian cents from 91.95 cents, ahead of Australian consumer confidence and monthly home loan data.

The kiwi rose to 73.82 yen from 73.38 yen, advanced to 4.4015 yuan from 4.3939 yuan, gained to 59.40 euro cents from 59.27 cents, and was little changed at 46.77 British pence from 46.83 pence.

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