Despite showing some modest strength from......>

KIWI: Despite showing some modest strength from off, NZD/USD wiped out its early

gains on the back of disappointing Chinese PMI readings. Both official & Caixin

manufacturing PMI gauges slowed and missed forecasts, as did official

non-manufacturing and composite indices.

- Worth mentioning NZ gov't fiscal statements, released early doors, revealed a

bigger than exp. budget surplus of NZ$2.52bn in the 9 months ending on Mar 31.

- Elsewhere, the NZ ANZ business confidence survey held at depressed levels.

- NZD/USD last deals at $0.6663, 3 pips worse off. Familiar technical picture

remains in play, with the initial layer of support provided by the lower 1.0%

10-DMA envelope, which kicks in at $0.6597. Conversely, a topside breach of

$0.6682, which has capped gains on Friday, yesterday and today, would expose the

21-DMA, situated at $0.6711.

- NZ focus turns to domestic labour market report due tomorrow. NZ QV house

prices hit on the same day, while building approvals will follow on Thursday.

Any fallout from another round of ministerial Sino-U.S. trade talks, which

commence today, will also provide interest.