AUD/NZD has shed 23 pips so far and last.....>

AUSSIE: AUD/NZD has shed 23 pips so far and last operates at NZ$1.0811. The

Aussie landed at the bottom of the G10 pile, following the simultaneous release

of local housing finance data and the RBA's most recent SoMP. The data was

pretty solid, with a surprising fall in investment lending being the only fly in

the ointment. The pressure on AUD has likely stemmed from a downgrade to the

2020 growth forecast, noting that slow wage growth may keep domestic inflation

pressures in check, and perhaps from a mention of "other policy options" being

considered.

- A fall below the psychological NZ$1.0800 level would draw attention to the

50-DMA, which comes in at NZ$1.0739. Conversely, a recovery of the Oct 30/Nov 6

peaks at NZ$1.0825/28 would bring the Sep 20 high of NZ$1.0840 into play. Above

opens the YtD high of NZ$1.0866 printed yesterday.

- The focus turns to next week's RBNZ meeting, after the RBA stayed its hand

this week. Markets currently price in a ~62% chance of a 25bps cut to the OCR at

the Nov meeting, down from the ~70% baked in yesterday, but still above the ~57%

seen a week ago.