AUD/NZD sold off overnight and last.....>

AUSSIE-KIWI: AUD/NZD sold off overnight and last trades at NZ$1.0499, 30 pips

lower on the day & just above its worst levels.

- NZD topped the G10 leaderboard on the back of fiscal stimulus pledges at home.

NZ FinMin Robertson said that the gov't will take advantage of low borrowing

costs and significantly boost spending on infrastructure projects, although the

details are yet to be unveiled. On top of that, NZ Q3 terms of trade index rose

1.9% Q/Q vs. the prior +1.4% & exp. of +1.0%. Meanwhile, NZ Tsy's monthly

economic indicators noted that GDP growth may fall short of budget forecasts.

- Across the Tasman, AUD may have been somewhat aided by strong Chinese PMI

readings, but the local economic data was less than inspiring. AiG m'fing PMI

slipped into contraction, ANZ job adverts extended decline, while building

approvals, company operating profit & inventories all undershot forecasts.

- The rate just broke below the NZ$1.0500 level for the first time since

mid-August and is heading towards the 61.8% retracement of the Aug 6 - Nov 7

rally at NZ$1.0495. Below there opens the Aug 12 trough at NZ$1.0454. Bulls keep

an eye on the 200-DMA, which intersects at NZ$1.0573.