Dovish overtones in the RBNZ's..........>

AUSSIE-KIWI: Dovish overtones in the RBNZ's communique pushed AUD/NZD higher

yesterday, which resulted in a break above a key resistance from Jun 16 high of

NZ$1.0729. The rate trimmed gains later in the day, as the Aussie came under

pressure from broader risk-off flows and softening oil prices.

- The rate slipped today and last trades -18 pips at NZ$1.0699, with NZD sitting

atop the G10 pile. There has been little to drive the move so far, with headline

flow still fairly light and with holidays in China limiting activity.

- We've seen some data releases on both sides of the Tasman Sea. New Zealand's

trade figures for the month of May matched exp., while  Australian job vacancies

plunged 43.2% Q/Q in May, which was the largest quarterly decline on record.

- Losses past Jun 22 low of NZ$1.0630 would allow bears to set their sights on

Jun 15 low of NZ$1.0582. Conversely, a bounce above NZ$1.0756, the peak of Jun

24, would clear the way to the NZ$1.0800 mark.