NZD has taken a hit in recent sessions,........>

KIWI: NZD has taken a hit in recent sessions, weighed on by a combination of

broader USD strength and the bubbling trade-based tensions between the US &

China.

- The latest round of NZIER economic forecasts has added weight to the kiwi

today. The economists surveyed trimmed their NZ GDP estimates, with inflation

estimates left broadly unchanged. The NZIER also suggested that "although the

NZD has surprised on the upside, expectations remain for a depreciation through

to 2021. The US Federal Reserve is expected to continue lifting interest rates

over the coming year. In contrast, the RBNZ is expected to keep the OCR on hold

until at least the middle of next year. This should reduce the yield

attractiveness of the NZD, and hence weigh on the currency." Consensus interest

rate forecasts have also been trimmed. On the upside public consumption exp.

were raised, but export exp. were trimmed.

- Support noted at $0.6923 (low Jun 15) then $0.6880 (low May 30), last $0.6926.

- NZ GDP, BoP data, Q3 consumer conf. & the GDT auction are this week's most

notable risk events for NZD traders.