NAB note that "NZDUSD has stumbled and a.......>

KIWI: NAB note that "NZDUSD has stumbled and a lower 0.70-0.72 trading range is

expected to prevail from here, which is more in line with fundamentals."

- NAB believe that "in the near term, the USD is likely to remain in the driving

seat. Further upside for the USD would see a more sustained move just below the

0.70 mark but strong technical support is in a range of 0.68-0.69 and that level

would be a tough one to crack. We've nudged down our end-Q2 target by 1 cent to

0.71, consistent with our model estimate and our view that the NZD might settle

into a lower range of 0.70-0.72 over the next month or two, with only brief

skirmishes outside the range." They reiterate that "NZ monpol won't provide any

support to the NZD over the foreseeable. Indeed, the NZD lost its high-yield

status some time ago & as the Fed Funds rate rises alongside a flat OCR, the

cost of carry for the NZD will continue to rise, representing an ever-increasing

headwind." As a result they leave their "year-end NZDUSD target unch. at 0.70

for now. The TWI is seen steadily falling as global liquidity conditions tighten

and the global growth outlook softens, we look for lower NZDEUR, NZDGBP & NZDJPY

crosses, while AUDNZD is anchored around 1.07."