Despite easing off initially, NZD/USD has......>

KIWI: Despite easing off initially, NZD/USD has picked up a bid alongside its

Antipodean peer after the release of the latest Australian CPI report, which

revealed that inflation accelerated to +1.7%, in line with expectations.

- Elsewhere, NZ Ministry of Biz., Innovation & Employment published the local

job ads data for Q3. The number rose 0.3% Q/Q vs. the revised 1.4% fall in Q2.

- NZD/USD sits at $0.6368, 12 pips higher on the day. A lift through the 76.4%

retracement of the Sep 12 - Oct 1 slide at $0.6393, which limited gains on Sep

16 & Oct 18, would expose the $0.6400 mark. A retreat under the 50-DMA at

$0.6340 would encourage bears to target $0.6320, the mid-point of the Oct range.

- Recap: Talk of potential for an NZ Super Fund dropping its policy of hedging

nearly all foreign investments in NZD provided support in Asia hours yesterday,

before a BBG piece suggesting that S&P might remove positive outlook from NZ

rating applied fresh weight. NZD/USD sold off into Europe and failed to retake

earlier highs subsequently, finishing slightly below neutral levels.

- Building permits and ANZ biz. confidence come out on Thursday, while ANZ

consumer confidence hits on Friday.