AUD/NZD has shed 39 pips thus far and...>

AUSSIE-KIWI: AUD/NZD has shed 39 pips thus far and last trades at NZ$1.0721. The

rate has sank below the peak of Apr 28 at NZ$1.0752, a former breakout level.

Bears look for a deeper sell-off past the 23.6% retracement of the Mar 18 - May

18 rally at NZ$1.0644, towards May 11 low of NZ$1.0608. Conversely, a bounce

above May 18 high of NZ$1.0844 would open up the key near-term support at

NZ$1.0866, which represents Nov 7 high.

- A round of comments from RBNZ Gov Orr lent support to the kiwi, as

participants saw a pushback against imminent deployment of negative rates as the

main take-away. Orr noted that the central bank doesn't want a negative OCR now,

but is prepared to use it, though "not until a lot later".

- Sino-Aussie tensions continue to simmer. BBG reported y'day that China might

tighten restrictions on more Aussie exports & today added that a bulk carrier

with barley from Oz has turned away from Machong, its original destination.

- On the data front, New Zealand's food price inflation accelerated to +1.0% M/M

from +0.7%. Across the ditch, Australian skilled vacancies tumbled 16.4% M/M,

while preliminary retail sales slid 17.1% M/M.