AUD/NZD last trades at NZ$1.0519, 14....>

AUSSIE-KIWI: AUD/NZD last trades at NZ$1.0519, 14 pips lower on the day. This

occurs after NZ 10-month budget surplus came in larger than exp. Also worth

noting NZ altered its dairy industry legislation and will no longer require

Fonterra to supply milk to independent processors with large own supplies.

- The rate dropped in yesterday's Asia-Pac trade as RBNZ Asst Gov Hawkesby

poured cold water on easing speculations, saying that NZ interest rates "will

remain broadly around current levels for the foreseeable future." Softer than

exp. Australian Q/Q GDP print allowed the pair to extend losses, before it moved

away from worst levels. London & NY hours saw AUD/NZD fall further, bottoming at

NZ$1.0500 before it ticked away from the figure into the WMR fix and held steady

towards the close.

- Bears look for a convincing breach of the psychological NZ$1.0500 level before

setting their sights on the lower 1.0% 10-DMA envelope at NZ$1.0474. The initial

bullish target is provided by the 55-DMA at NZ$1.0562.

- Australian trade balance data comes out at 0230BST/1130AEST.