AUD/NZD last deals at NZ$1.0581, 11.....>

AUSSIE-KIWI: AUD/NZD last deals at NZ$1.0581, 11 pips higher on the day.

- Monday's Asia-Pac session saw the rate operate within a 23 pip range, albeit

some early volatility was noted in indicative trade, after U.S. President Trump

tweeted that Washington will increase levies on Chinese goods, unless a

breakthrough in bilateral trade negotiations is reached by Friday.

- AUD/NZD then climbed into the London fix and consolidated just shy of

NZ$1.0600 thereafter, before posting a ~20 pips spike lower into the close, as

U.S. TR Lighthizer & U.S. Tsy Sec Mnuchin criticised China for an "erosion of

commitments" observed in the recent phases of trade talks and confirmed that

higher tariffs on Chinese imports will become effective on Friday.

- Worth noting AU AiG construction PMI printed at 42.6 vs. the prior 45.6.

- Should AUD/NZD manage to show above NZ$1.0600, bullish focus would turn to the

21-DMA, situated a further 10 pips above. Meanwhile, bears look for a dip

through NZ$1.0550, which limited losses last week.

- As a reminder, the RBA will deliver its MonPol decision later today, ahead of

tomorrow's decision from the RBNZ.