NZD underperformed overnight after RBNZ........>

KIWI: NZD underperformed overnight after RBNZ Deputy Governor Bascand suggested

that an increase in bank capital requirements (from 14% to 15%) may eventually

result in rate cuts.

- NZDUSD dropped 50 pips on the move to $0.6758, before basing ahead of the 100

& 200-dma's at $0.6747/51. Recovery efforts extend back toward $0.68 in early

Europe with near-term resistance at $0.6817/26 from the Asia high & 50%

retracement of $0.6894-0.6758. Bears focus on a close below the 100 & 200-dma's

to extend the downtrend and target the Feb 12/Jan 22 lows at $0.6720/07.

- NZDJPY briefly traded under Y75 to extended pullback lows of Y74.83. Key focus

remains on the 200 & 100-dma's at Y75.13/19, last Y75.18.

- EURNZD touched NZ$1.6769 with topside focus on the NZ$1.6830/50 zone which has

registered a series of previous highs through February and holds the 50%

retracement level of 2018 range.

- NZDCAD based ahead of the 100-dma (C$0.8944), last C$0.8980. Below here opens

the 38.2% retracement level of C$0.8322-0.9257 & C$0.8900, ahead of the 200-dma

at C$0.8882.