Better than forecast NZ CPI data for....>

AUSSIE-KIWI: Better than forecast NZ CPI data for Q2 has provided some very

light support to the Kiwi, enough to make the currency the best performer in the

G10 basket (albeit by narrow margins). CPI inflation slowed to +1.5% Y/Y from

+2.5% vs. exp. of +1.3%, while the quarterly gauge came in at -0.5% Q/Q vs. exp.

of -0.6%. Worth noting that the RBNZ will publish its sectoral factor model at

04:00 BST/15:00 NZT.

- AUD/NZD changes hands at NZ$1.0656, 9 pips worse off on the day. The key

near-term support has been defined at NZ$1.0566, which represents the low of Jul

10. On the flip side, a clearance of the 50-DMA at NZ$1.0695, which capped gains

yesterday, would clear the way to Jun 30 high of NZ$1.0718.

- Looking ahead, Australia's labour market report and Chinese GDP/activity data

will be closely watched today.