Despite improved NZ Retail Sales overnight,....>

KIWI: Despite improved NZ Retail Sales overnight, NZDUSD breached the key $0.65

level after Bloomberg headlines reported that the US is weighing the

blacklisting of up to 5 Chinese Surveillance firms. The downtrend extends into

Europe with the rate touching multi-month lows of $0.6494. Traders are reminded

of the recent death cross formation (50-dma below 200-dma) with next support

seen at $0.6483/65 from the lower bound of the 1.0% 10-dma MAE envelope & Oct 26

2018 low. Further support is located at $0.6442/46 from the Oct 10-11 2018 lows.

- NZDJPY touched pullback lows of Y71.71 with key support from the double-bottom

Y71.50/55 area. Technically the outlook remains bearish with the triple

crossover, 50-dma trading below 100 & 200-dma's.

- EURNZD rallied to NZ$1.7175, before stalling ahead of resistance from

yesterday's high (NZ$1.7178). Expect further resistance behind on approach to

the NZ$1.72 level, ahead of the Jan 3 ytd high at NZ$1.7249.