NZD/USD advanced 27 pips overnight and last....>

KIWI: NZD/USD advanced 27 pips overnight and last trades at $0.6635, with the

bulk of the move occurring on the back of the publication of the notes for RBNZ

Asst Gov Hawkesby's recent speech on the NZ central bank's website.

- Hawkesby said that "our central view is that New Zealand's interest rates will

remain broadly around current levels for the foreseeable future," adding that

the RBNZ still has "room to provide conventional monetary stimulus if required."

- Worth noting this contrasts with yesterday's rhetoric from Australia's central

bank, whose Gov Lowe said that exp. a rate cut from the RBA is not unreasonable.

- The kiwi had already outperformed its G10 peers at the margin ahead of

Hawkesby's comments, against the backdrop of positive risk sentiment inspired by

the broader perception that a FOMC rate cut is on the table.

- A break above the 50-DMA at $0.6641 would give bulls the green light for

targeting May 3 high of $0.6653. Bears look for a retreat below the upper 1.0%

10-DMA envelope at $0.6621, before setting their sights on the $0.6600 mark.

- NZ economic docket is rather thin during the remainder of this week, with QV

house price & ANZ commodity price indices due tomorrow.