AUD/NZD has given away 11 pips so far...>

AUSSIE-KIWI: AUD/NZD has given away 11 pips so far and sits at NZ$1.0725 at

typing. Bears continue to focus on May 11 low of NZ$1.0608 and a break below

there would bring May 4 low of NZ$1.0572 into view. Bulls need a clean break

above May 18 high of NZ$1.0844, the YtD peak, to regain control.

- The RBNZ drew attention this morning, as its Chief Economist Ha joined his

colleagues from the MPC in downplaying potential for imminent negative interest

rates. Westpac revised their RBNZ call and now expect policymakers to bring the

OCR into negative territory in Apr 2021, rather than Nov this year.

- On a different note, Ha added that the central bank is pressuring NZ retail

banks to pass on monetary stimulus and trim mortgage interest rates.

- In Australia, CBA published preliminary PMI readings for May. The

manufacturing gauge moved deeper into contraction, while services & composite

indices recovered somewhat, but remained at very depressed levels.

- Looking into the economic calendars of both South Pacific nations, we await

today's NZ credit card spending and comments from RBA Gov Lowe.