AUD/NZD sits at NZ$1.0792, a handful....>

AUSSIE-KIWI: AUD/NZD sits at NZ$1.0792, a handful of pips lower on the day, in

the lead-up to the publication of Australian Q3 CPI report.

- NZ news flow drove price action in yesterday's Asia-Pac session. A Stuff piece

suggesting that an NZ Superannuation fund considers dropping its policy of

hedging almost all of its foreign investments in NZD supported the kiwi, before

BBG reported that according to NZ Tsy S&P might remove positive outlook from

NZ's AA rating.

- The rate rose through the rest of the day as AUD gained strength. Little

impact noted from RBA Gov Lowe's comments; the Governor yet again downplayed

potential for bringing the cash rate into negative territory but expressed

readiness to ease policy if needed.

- The pair took out the key Oct 17 high of NZ$1.0793 yesterday. Bulls look for a

strong push above NZ$1.0805/06, which represent yesterday's/Oct 1 highs. Above

would turn focus to the YtD peak, located at NZ$1.0840. Conversely, bears look

for a slide under the 23.6% retracement of the Oct 24-29 rally at NZ$1.0772,

ahead of the NZ$1.0714 50-DMA.