AUD/NZD has dropped 14 pips and sits....>

AUSSIE-KIWI: AUD/NZD has dropped 14 pips and sits at NZ$1.0592 at typing, with

the Aussie pressured by China's decision to take its complaints re: Australia's

treatment of Huawei to the WTO, as well as downticks in oil & iron ore prices.

Also talk of AUD/NZD sales ahead of NZ CPI due tomorrow.

- On Friday, disappointing NZ BusinessNZ m'fing PMI and card spending figures

limited the kiwi in early Asia-Pac trade, before the publication of RBA

Financial Stability Review. AUD/NZD erased its earlier gains upon the release of

the FSR, which pointed to "growing downside risks" and noted falling Sydney

property prices, despite seeing Australian financial system "resilient." 

- Subsequent gyrations on the back of strong Chinese trade balance &

credit/lending data, as well as the broader risk-on flows, allowed AUD/NZD to

close 18 pips higher.

- The rate has slid back below the NZ$1.0600 mark today, after failing to

consolidate above the figure, despite several attempts last week. A clean

topside breach of that level would open up the upper 1.0% 10-DMA envelope at

NZ$1.0662. Meanwhile, bears look for a dip towards last week's low of NZ$1.0533.