A combination of factors weighing on NZD.......>

KIWI: A combination of factors weighing on NZD overnight dragged the currency to

the bottom of the G10 pile.

- NZD/USD edged higher initially before easing off as the APRA suggested that it

considers raising capital requirements on some financial institutions, while the

NYT reported that the U.S. weighs blacklisting China's Hikvision. The pair

tested $0.6500 several times, but failed to breach the level.

- BBG headlines stating that the U.S. is weighing the blacklisting of up to 5

Chinese surveillance firms triggered fresh risk-off flows and pushed NZD/USD

below the aforementioned $0.6500, to the new YtD low of $0.6497.

- NZD/USD last deals at $0.6498, 9 pips worse off. Bears look to the lower 1.0%

10-DMA envelope at $0.6483, while a return above $0.6500 would expose the

downtrend resistance/Tuesday's peak, located at $0.6541/43. As a reminder, the

pair's 50-DMA has recently crossed below its 200-DMA.

- Worth noting NZ retail sales (ex inflation) rose by 0.7% in Q1, slightly

faster than expected, but undershooting the 1.7% growth in the prev. quarter.

- NZ focus turns to Friday's release of trade balance data.