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NZD/USD also came under pressure in early......>

KIWI
KIWI: NZD/USD also came under pressure in early dealing this week, on the back
of weekend headlines from the WSJ noting that China has cancelled the planned
trade talks with the U.S. amid escalation of tariff threats. NZD/USD last
~$0.6685, back from the early lows.
- From a technical perspective bulls look to $0.6700 which capped the pair on
Friday, followed by the 30 August high ($0.6717), while initial support is
located at $0.6650.
- Thursday's RBNZ MonPol decision headlines the local docket this week. The fact
that NZ growth in Q2 provided a comprehensive beat vs. the Reserve Bank's Q2
estimate (0.5% Q/Q) is allowing some to suggest that the Bank has room to alter
its rhetoric, which has taken a dovish twist since Gov. Orr took the reins,
although most expect the RBNZ to reiterate that the next move in the OCR could
be up or down. As a reminder all of those surveyed expect the OCR to be left
unchanged this week. Market now prices ~7bp worth of easing through the end of
June 2018 vs. ~10bp pre-GDP. Elsewhere NZ trade data will hit on Wednesday,
while ANZ consumer Confidence data will hit on Friday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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