NZD continues to come under pressure..........>

FOREX: NZD continues to come under pressure. Traders had initially ignored the

in-line headlines of the GDP release but are perhaps now paying more attention

to the breakdown. The key disappointment was flat household consumption, this

could have an impact on the RBNZ's monetary policy outlook. Trends in household

spending need to be watched closely, even if this blip is temporary, as the

slowing took place at a greater rate than the RBNZ expected, indeed, the Reserve

Bank had highlighted that the risk to household spending was to the upside.

NZD/USD made a fresh YtD low at $0.6832, last $0.6840.

- Modest risk on flows were noted with USD/JPY trading at Y110.60, T-Notes

breaching yesterday's lows as US equity index futures pushed through Wednesday's

highs, although headline catalysts were not apparent. The move held despite

comments from China's MOFCOM re: the trade war situation, showing that they have

no intention of backing down after the latest batch of U.S. sanctions headlines.

- Looking ahead the SNB, Norges Bank & BOE issue their respective MonPol

decisions. Elsewhere ECB's Weidmann, Nowotny & Villeroy, Fed's Kashkari & a late

address by BoE Gov Carney add to the day's central bank decisions.