ASB writes that "current support for the NZD...>

KIWI: ASB writes that "current support for the NZD is being provided by NZ's

solid growth outlook, historically-high Terms of Trade, and the resilience of

local economic data in the face of weak confidence and adverse positioning. NZD

supports are generally expected to remain in place, but our expectation of

further depreciation of the Chinese yuan and the negative risk profile for

global growth should temper optimism, with the NZD losing some of its lustre.

Importantly, we have retained our strong USD outlook. Supports to the Greenback

remain, including the solid US growth outlook, higher US interest rates relative

to most global peers, and the elevated US Terms of Trade. Moreover, the fickle

global scene, elevated trade tensions, and slowing growth in China should

support the USD. We expect the NZD to oscillate in a 65 to 71 US cent range over

the forecast period."