NZD trading in line with the increased.........>

KIWI: NZD trading in line with the increased risk-aversion owing to an

escalation in the trade war, after comments from RBNZ Gov. Orr seemingly played

down the chances of a September rate cut on Friday (could the evolution of the

trade war since then cloud that idea?), lending some support to the kiwi. As a

reminder, Orr noted that the Bank will wait & see what the situation is like in

November and will cut "if necessary."

- Rate last deals 45 pips lower on the day at $0.6360, after printing as low as

$0.6342 today, having a look below near-term trend support from the May lows in

the process. Consolidation below the Jan 20 2016 low at $0.6348 would open up a

deeper fall, potentially towards the medium term bearish channel base, which is

seen at $0.6271 today.

- The latest round of monthly NZ trade data revealed a wider than expected

deficit, as imports topped exp, although the release had no notable effect on

price action.

- Participant's now look to the daily USD/CNY fixing from the PBoC.