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

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. Much like the AUD,

NZD drew some support from the latest round of headlines from the Chinese white

paper on U.S. trade relations, but that quickly faded, and was very limited in

nature as the bulk of the paper was less conciliatory than the headlines.

- NZD/USD last ~$0.6670. Bulls look to $0.6700 which capped the pair on Friday,

followed by the 30 Aug high ($0.6717), initial support is noted 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.