AUD/NZD lost altitude in the............>

AUSSIE-KIWI: AUD/NZD lost altitude in the Asia-Pacific session and trades at

NZ$1.0534, 22 pips worse off. A close in the red would extend its losing streak

to nine straight days.

- We saw some fluctuations early on as U.S. President Trump signed the Hong Kong

bill into law, sending AUD/NZD lower to NZ$1.0541 and back. The main driver,

however, came with the most recent ANZ business confidence survey out of New

Zealand, which according to the accompanying commentary "was much stronger

across the board." The release prompted ABS to drop their expectation of a 25bps

OCR reduction in Feb from their RBNZ call, leaving just one analogical cut in

May 2020. A miss in Australian private capex data for Q3 kept a lid on the pair,

preventing any recovery attempts.

- AUD/NZD operates at its worst levels in more than three months, but the Aug 26

low of NZ$1.0522 remains intact. A break below there would open up the 61.8%

retracement of the Aug 6 - Nov 7 rally at NZ$1.0495. On the flip side, bulls

need to reclaim the 200-DMA at NZ$1.0572 before attempting a move at

NZ$1.0605/06, the high of Nov 22/23.6% retracement of this month's sell-off.