NZD has outperformed its major counterparts....>

KIWI: NZD has outperformed its major counterparts in early dealing this week,

with NZDUSD consolidating above 0.7300, after rumoured demand from leveraged and

offshore macro funds. This allowed the AUDNZD to move lower, last trading around

1.0750.

- For the NZDUSD cross the 21-DMA is proving something of a stumbling block with

the failure to gain traction above a concern for bulls. The $0.7243 support is

key today with bears needing a close below to shift initial focus back to the

200-DMA. Bears need a close below the 200-DMA to hint at a move back to Dec lows

with below $0.7042 needed to confirm. Bulls still need a close above $0.7318 to

confirm focus on 2018 highs.

- For AUDNZD the topside failure in past weeks ahead of the 55-WMA and key DMAs

resulted in an aggressive sell-off and focus back on 2018 lows. Bears look for a

close below NZ$1.0650 to add weight to the case for a test of NZ$1.0458-91 where

the LT rising TL off 2015 lows is noted. Bulls still need a close above

NZ$1.0776 to gain breathing room and above the 55-DMA to hint at a move

targeting NZ$1.1072-1.1139.