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NZD took the brunt of overnight risk-off.......>

KIWI
KIWI: NZD took the brunt of overnight risk-off flows as local press circulated
reports of a domestic patient being tested for Covid-19. NZD/USD tumbled through
the session even as headlines re: tested patient didn't cross main news wires.
Coverage focused on new measures taken by NZ gov't against the epidemic, incl.
ban on travel from Iran (the patient has just returned from there). The rate
extended losses through a key support level ($0.6241, Oct 16 low) as PM Ardern
said that the patient has been confirmed as first NZ Covid-19 case.
- Today saw a decent re-pricing of chances for a rate cut at the next RBNZ
meeting; implied odds jumped to ~47% from yesterday's ~26%.
- NZD/USD sits -71 pips at $0.6236, with bears now eyeing the Oct 1 low of
$0.6204. Bulls look to retake the $0.6300 handle before targeting $0.6335, which
represents yesterday's peak.
- NZ highlights next week include terms of trade (Monday), building permits
(Wednesday) & vol. of all buildings (Friday). There's a GDT auction coming up
next Tuesday as well. In the meantime, it will be worth watching Chinese
official PMIs tomorrow.

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