NZD/USD advanced steadily through the..........>

KIWI: NZD/USD advanced steadily through the session, touching the best levels

since mid-April in the process, and last deals at $0.6733, 14 pips better off.

The rate topped out at $0.6738, failing to make substantial headway beyond the

upper 1.0% 10-DMA envelope at $0.6737.

- No immediate reaction was spotted upon the release of NZ Q2 CPI, which

accelerated to +1.7% Y/Y and +0.6% Q/Q from +1.5% and +0.1% respectively.

Headline index matched RBNZ and market exp.; the non-tradable metric also fell

in line with RBNZ forecasts and tradable inflation provided a minor miss.

- That being said, it might have been the case that a solid pickup in inflation

lent some support to the kiwi, even in the absence of surprises.

- Subsequently released RBNZ sectoral model inflation, one of the central bank's

preferred core inflation gauges, held steady at +1.7% Y/Y.

- A higher close would extend the rate's winning streak to five consecutive

days. Bulls would be pleased by a breach of $0.6764, which represents the 61.8

retracement of the $0.6939-$0.6482 slide. Bears look to the 200-DMA at $0.6718,

a violation of this level would open up the psychological $0.6700 figure.