Modest selling pressure has pulled the rug.....>

KIWI: Modest selling pressure has pulled the rug from under NZD/USD as the rate

has retraced a spike posted in the NY/Asia crossover in reaction to New

Zealand's Q3 GDP data. Headline figures were pretty strong, GDP growth

accelerated more than forecast to +0.7% from +0.1% and on a Y/Y basis it picked

up to +2.3% from +2.1%. The fly in the ointment was a decent downward revision

to the prior reading of Q/Q GDP change, to +0.1% from +0.5%.

- New Zealand's trade balance, released at the same time, showed a wider than

exp. deficit, albeit underpinned by slight beats in both imports and exports.

- The rate now trades at $0.6579, 11 pips lower. A break below Wednesday's

trough at $0.6552 would shift the focus squarely to the key support from the

$0.6531 200-DMA. Bulls look for a resumption of the uptrend, which would be

heralded by a clearance of the Dec 13 high of $0.6636.

- Wednesday saw the rate start on a softer note, pressured by a poor GDT auction

& wider than exp. BoP current a/c deficit. European hours brought reprieve, with

the rate edging into positive territory ahead of the WMR fix.

- NZ focus turns to the ANZ Consumer Confidence Survey, due on Friday.