AUD/NZD last deals at NZ$1.0406, a......>

AUSSIE-KIWI: AUD/NZD last deals at NZ$1.0406, a handful of pips lower on the

day, with both sides of the pair drawing support from progress in Sino-U.S.

trade negotiations. Worth mentioning kiwi has also benefited from a stronger

than exp. domestic retail sales print.

- On Friday, the pair closed 13 pips lower, as enthusiasm re: Sino-U.S. trade

talks put a bid in both Antipodean currencies. Although the Asia-Pac session saw

kiwi spike lower on the back of comments from RBNZ Dep Gov Bascand, who

suggested that an increase in bank capital requirements (from 14% to 15%) may

eventually result in rate cuts (albeit in a heavily caveated manner), NZD

managed to outperform AUD at the end of the day.

- After a brief look below, bears look for a move through the psychological

NZ$1.0400 level, before attempting a run at the Feb 14 low of NZ$1.0369.

Conversely, bulls need to clear the 21-DMA at NZ$1.0464 before challenging

NZ$1.0490, which limited Friday's gains.