MNI Analysis shows NZD could be too far........>

KIWI: MNI Analysis shows NZD could be too far divorced from fundamentals:

- NZD looks undervalued on fundamentals, with rate expectations the final hurdle

-A terms of trade index showed export prices outstripping import prices at a

record-breaking pace last week

-Should NZD/USD break near-term resistance levels, a test on the $0.7125 200-dma

looks increasingly likely

-After peaking in late January, NZD's 2018 performance has been poor, dropping

as much as 7.9% as NZ/US rate differentials were marked lower, inflation slowed

and the Fed raised rates in March. The resulting NZD underperformance has left

the currency too far divorced from the underlying fundamentals, suggesting that

it may have room to recover.

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