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BLOCK, Green June Call Fly

KIWI: NZD led the way overnight, on the back of an uptick in the latest ANZ
Business Confidence release.
- Headline confidence remains deep in negative territory, while investment
intentions slid further. This should mean that the RBNZ re-deploys its forward
guidance i.e. "the direction of our next OCR move could be up or down," when it
issues it latest monetary policy decision tomorrow, in spite of the stronger
than expected NZ Q2 GDP data. All of those surveyed expect the RBNZ to leave the
OCR unch. At 1.75%.
- As a reminder the last MonPol decision saw the RBNZ note that "risks remain to
our central forecast. The recent moderation in growth could last longer. Low
business confidence can affect employment and investment decisions."
- NZD had blipped lower in early dealing on the back of the widest Aug NZ trade
deficit on record.
- NZD/USD last deals at ~$0.6665, off of data reaction highs of $0.6686. Bulls
look to $0.6700 which capped the pair on Friday, while support is located at the
high from Sep 19 ($0.6623).
MNI London Bureau | +44 0203-865-3809 |