ANZ note that "the NZD/USD has bounced as......>

KIWI: ANZ note that "the NZD/USD has bounced as expected, and with recent data

showing the market remains short, there may be more left in this tank (although

we do suspect positioning was lightened into the US holiday period). That being

said, and as we highlighted last week, if the near-term data flow continues to

undershoot expectations, then there is no reason why the NZD can't remain under

pressure, even with stretched positioning, so watch next week's Q2 CPI figures.

The re-escalation in trade tensions also makes it hard to be upbeat. We

mentioned last week that we now believe this cross is in a higher (lower)

trading range, and we're happy to maintain that view. In fact, it if was just

about domestic considerations, then we'd see room for further near-term strength

(weakness). However, it is not just about domestic considerations of course and

the re-escalation in trade tensions today is a clear risk and clouds the

near-term picture. We don't have overly strong views on NZD TWI largely because

of the numerous cross-currents impacting some other key currency crosses,

especially GBP and EUR. However, we still maintain a bearish medium-term view

overall."